* Element: An element is a pure substance made up of only one type of atom. Examples include oxygen (O), hydrogen (H), and gold (Au).

* Compound: A compound is formed when two or more different elements chemically combine in a fixed ratio.

Distilled water is formed by the chemical combination of two hydrogen atoms (H) and one oxygen atom (O) in a fixed ratio (H₂O). This chemical bond makes it a compound, not an element.