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First off: a List is a Collection. It is a specialized Collection, however.
A Collection is just that: a collection of items. You can add stuff, remove stuff, iterate over stuff and query how much stuff is in there.
A List adds the information about a defined sequence of stuff to it: You can get the element at position n, you can add an element at position n, you can remove the element at position n.
In a Collection you can't do that: "the 5th element in this collection" isn't defined, because there is no defined order.
There are other specialized Collections as well, for example a Set which adds the feature that it will never contain the same element twice.
Collection is the root interface to the java Collections hierarchy. List is one sub interface which defines an ordered Collection, other sub interfaces are Queue which typically will store elements ready for processing (e.g. stack).
The following diagram demonstrates the relationship between the different java collection types:
