Here's a breakdown:

* Elements: The fundamental building blocks of matter. They cannot be broken down into simpler substances by ordinary chemical means. Examples include oxygen (O), carbon (C), hydrogen (H), and iron (Fe).

* Compounds: Substances formed when two or more different elements combine chemically in a fixed ratio. Examples include water (H₂O), carbon dioxide (CO₂), and table salt (NaCl).

So, a compound like water (H₂O) is formed from the elements hydrogen (H) and oxygen (O) chemically bonded together.