Examination and Online examination both are different modules.
Examination Module: It is used for regular/offline examination where exam based on theory or practical and student answer in this exam on pages based answer sheet. Suppose a regular maths exam of class 7 should be conduct in school's class using question paper and answer sheet.  After examination student should submit answer sheet to examiner. Finally student marks should be entered in exam marks and their result and marksheet will be prepared.
Online Examinations Module : It is used for online examination where question, exam, answer everything is created under Smart School and student take exam online through computer and submit their answer immediately. After result  published student can check their result online.