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HTML describes (marks up) the role of on-page elements. It doesn't tell the browser how to display them - the browser decides how to do that. An <h1> display default could be 22 pixel arial or it could be 18 pixel Times New Roman. Either way, it doesn't matter... the browser default display is just to give you a very rough skeleton display of your markup - you can have each element display as you wish by styling each element using css.
So, don't worry about how elements display... instead think about the role they play in the document.
In the majority of cases, a navigation list is an unordered list, so it would be correct to mark it up as <ul>...</ul> .
If you style the navigation list as a left-hand vertical menu and then some years later decide to redesign the site with the navigation as a horizontal menu at the top of the page, all you need to do is edit the style instructions in your external stylesheet and though the element remains identically marked up on each page, it will now display differently.