WAV are a lossless format, which means that they are as close as possible to the original recording in terms of quality while still staying within a certain file size. They are the format found on your traditional CD's.
MP3 is an encoding standard that compresses the WAV files so that they are not as large, unfortunately in doing this it reduces the quality of the music. The quality change can range from terrible at something like 60kbps to excellent like 320kbps.
A full quality MP3 at 320kbps is perfect for normal consumer needs. WAV is still fine but too big a file size for what you get, and most audio equipment is not capable of sounding better than 320kbps unless you have studio mixing equipment or public speakers.
In case you were wondering AAC, is Apples own WAV standard but involves compression so is virtually the same as MP3. There are lots of other standards but you dont need to worry about them. Anything you need will work with a good old 320kbps MP3.
If you wanna know what the kbps actually means that let me know, id love to help.
