For example, if you have this function:
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def explain_param_vs_arg(param1, param2):
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print param1, param2
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and call it like this:
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explain_param_vs_arg("arg1", "arg2")
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The variables param1 and param2 are the parameters, and the values that you give them, in this case "arg1" and "arg2", are the arguments.
Wikipedia explains. This question could have been easily googled. In fact, that's what I did.
Hope this makes sense.