Only G-d and man have free will. G-d had the Earth form the human body while He formed the human soul to insert into the body. Just like G-d rules over all of creation, man rules over the animal world. This is consistent with the end of verse 26 where dominion over the animal kingdom is discussed. His first is that man, unlike other creatures, has four qualities.
Man physically exists, grows, feels, and thinks.
As the only creation that contains all of these qualities, man is similar to G-d, who contains every possible quality. Abarbanel also suggests that man's physical parts are representative of the world and of G-d's actions. For, in relation to all of the exalted qualities which we distinguish in the Blessed One is His acting on the level of His creatures, we find corresponding qualities in the figure of man. And, similarly, all of the other components of the body can be well understood as paralleling in their form and function the qualities to which He resorted in the making of His creations. Abarbanel's third interpretation is based on the Maimonidean understanding of the intellect.