If you refer to the official documentation the integration between two solutions will allow you to personalize email with a dynamic image. This personalization occurs when the email is opened by the end user. So it is indeed dynamic.
Then there are RECOMMENDATIONS available in Target which is equivalent to Offers in Campaign. If you wish to integrate recommendations from target into email you will have to fire a HTTP GET request from your delivery creative in campaign. This will need you to develop custom JS code.
Also, the integration between the two solutions is ever evolving so there are new ways coming up with every release.
Hope this helps. Please do mark this as helpful/correct answer, if your query has been answered, so that others can benefit.