An identity you can create that has specific permissions with credentials that are valid for short durations.
Roles can be assumed by entities that you trust.
Trusted entity types:
AWS service: allow aws services to perform actions within this account
AWS account: allow entities in other AWS account (from you or 3rd party) to perform account in this account
Web Identity
SAM 2.0 federation
Custom trust policy
Policy:
A policy is an object in AWS that defines permissions (what action on what service, for what access level and on which resource)
It can be:
AWS managed (predefined) policy
Custom policy
Inline policy: have a one-to-one relationship with the IAM entity they are attached to (specific to user, group, or role and cannot be attached to any other entity)