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I would guess you are supposed to be able to tell from the context which of several meanings is being used. "Is generation important?" is a rather odd thing to say, although possible, so "gender" seems more likely here. Not being a native German speaker, I'm not sure what "Geschlecht" really sounds like to one, but what sakasiru said above makes a lot of sense. I assume, from what (s?)he said, that "Geschlecht" mainly means gender, but in certain contexts would be translated to the English words "generation" or "family". (Can't you just imagine "of royal gender" meaning "of royal lineage/family"?)