This is a reference to the Five-Percent Nation. Five Percenters believe that 10% of people know the origin of existence and use their power to keep 85% of the world from finding out. The last 5% know the origin of existence and want to enlighten the 85%.
I personally believe that 95% of all statistics are made up, but whatever floats your boat…

Drop Squad was a 1994 film based on a group of black people that would kidnap and deprogram other black people who were corrupting the African-American community. Their deprogramming involved both violent and nonviolent tactics.

Marvin the Martian of Looney Tunes fame had a gun named the Q-36 Explosive Space Modulator that he tried to blow up Earth with.

Double Entendre
1. Luda has a lot of money
2. Major Coinz was an all-female rap group that included Amil, a rapper/singer who was signed to Roc-A-Fella from 1997 to 2001.

Luda has a lot of sex. However, he confused llamas with camels. Llamas have a flat back, but camels have humps. Contrary to popular belief, these humps are filled with fat, not water.
In 2003, Luda learned the difference between llamas and camels.

Luda’s crew is always up to something. This line is a reference to the 90’s rap group A Tribe Called Quest, who released the classic album Midnight Marauders in 1993.

Hov is no stranger to paying homage to other great MCs, but it sounds like he’s paying homage to Andre 3000’s flow in a song that actually features Andre 3000.

Vito is an alias Jay goes by, a shortened form of Hovito (and maybe in reference to The Godfather, Vito Corleone). He mentioned it in Beanie Sigel’s “Think It’s a Game:”

I, Young Vito, voice of the young people
Mouthpiece for hustlers, ventriloquist for jugglers

This is probably an allusion to this line from “Mind Playing Tricks On Me” by the Geto Boys.