Two identical target blocks of mass \(M\) rest at rest on a horizontal, frictionless surface. Two identical projectiles of mass \(m\) are fired horizontally to the right with the same speed \(v_0\) toward the blocks.

In Case 1, the projectile embeds itself inside Block 1.
In Case 2, the projectile collides elastically with Block 2 and rebounds to the left.

Which option correctly identifies the block that experiences the greater magnitude of impulse during the collision and the projectile-block system that dissipates the greater amount of mechanical energy?