A package in Python may contain an __init__.py file which is intended to initialize the package's state; however, the correct name for this file is __init__.py, not init.py. The __pycache__ folder is used to store semi-compiled (bytecode) Python modules, which are generated when the Python interpreter executes scripts for better performance. The sys.path variable is indeed a list of strings that specifies the directories the interpreter should search for modules being imported. Therefore, the correct statements are that __pycache__ is a folder that stores semi-compiled Python modules and that the sys.path variable is a list of strings.