And shown him the two ways,
This refers to the two paths.
Sufyan Ath-Thawri narrated from `Asim, from Zirr, from `Abdullah bin Mas`ud that he said,
وَهَدَيْنَـهُ النَّجْدَينِ
And shown him the two ways,
"The good and the evil."
Similar to this has been reported from `Ali, Ibn `Abbas, Mujahid, `Ikrimah, Abu Wa'il, Abu Salih, Muhammad bin Ka`b, Ad-Dahhak, and `Ata' Al-Khurasani among others.
Similar to this Ayah is Allah's statement,
إِنَّا خَلَقْنَا الاِنسَـنَ مِن نُّطْفَةٍ أَمْشَاجٍ نَّبْتَلِيهِ فَجَعَلْنَـهُ سَمِيعاً بَصِيراً
إِنَّا هَدَيْنَـهُ السَّبِيلَ إِمَّا شَاكِراً وَإِمَّا كَفُوراً
Verily, We have created man from Nutfah Amshaj, in order to try him;so We made him hearer and seer.
Verily, We showed him the way, whether he be grateful or ungrateful. (76;2-3