This is the inferior. Know, oh mighty-armed one!, My other nature, the superior, which is the essence of living beings, by which this world is sustained.

The prakṛti of 7.4 is aparā (inferior, in the sense of being insentient). There exists anyā parā prakṛti — another, superior, the superior nature of God.

Jīva-bhūtām — that which consists of living beings, the jīva. The jīva are also prakṛti — energy/creation of God — but cetana (conscious), not jaḍa (inert). Through it idam jagat (this universe) is dhāryate (sustained, maintained).