I think this is correct, but I’m not 100% certain…
To defederate from an entire instance, in this case lemmynsfw, click the triangle-looking icon (beneath top bar, towards the right side of the page) and then set Status to Off.
To block just one of the categories of lemmynsfw, on the right side, scroll down just a little to see Magazine, then click the “no” icon for block magazine.
From the Mastodon blog post about Meta federation:
Will Meta get my data or be able to track me?
Mastodon does not broadcast private data like e-mail or IP address outside of the server your account is hosted on. Our software is built on the reasonable assumption that third party servers cannot be trusted. For example, we cache and reprocess images and videos for you to view, so that the originating server cannot get your IP address, browser name, or time of access. A server you are not signed up with and logged into cannot get your private data or track you across the web. What it can get are your public profile and public posts, which are publicly accessible.