Click 'Start' and read the information:
http://www.bbc.co.uk/...qa/cells/cells4.shtml
This is the key sentence from that page:
"Osmosis is the movement of water from a less concentrated solution to a more concentrated solution through a partially permeable membrane". (Just remember that and you're well on your way to passing your exam!).
You asked for an example of osmosis:
It's the way that plants absorb water through their roots. The cell walls, in the plant's roots, provide a 'partially permeable membrane' (which simply means that water can travel inwards, but not outwards).
Here's the other key bit of information you'll need:
"Diffusion occurs when particles spread. They move from a region where they are in high concentration to a region where they are in low concentration"
That's taken from here:
http://www.bbc.co.uk/...qa/cells/cells3.shtml
As stated on that page, an example of diffusion is when food moves from the gut (where it's in a high concentration) into the blood vessels lining the gut walls (where it's in a lower concentration).
Chris