The image is far too shitty to see anything. I really doubt that thing can run genesis games on the Saturn. You'd need extra hardware on the cart to do it... that prolly works for plugging other carts (RAM carts, memory carts...).
And no, those Sonic games in Sonic Jam are NOT emulated, they were merely ported to the Saturn. Nowaday cartridge-based console emulators need to load the entire ROMs in memory (even if it's virtual HD memory). The Saturn has only 2MB of RAM, and not even the very first Sonic game can fit on that.
And I doubt Sega would go through the trouble of developing a dynamic data access system, to stream the ROM off the CD instead of loading it entirely and overcome memory limitations (a technique that could enable Neo Geo emulaton on the Dreamcast), when they had complete access to the games' source codes.
There are Emulator/Converter carts for the PSX and SS, but from the picture It looks like some cheap Pro Action Replay Clone for the megadrive. I bet he never plugged it into a saturn before, he just assumed it goes into one. They have many Save-state, Cheat carts for old systems floating around HK. You should read the label first or ask someone. Otherwise you might buy a real "genesis" cheat/game cart, when you really want a PSX/SS adapter to play Genesis games.