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Webhosting is a service that provides Internet users with online systems for storing information, images, video, or any content accessible via the web. Web hosts are companies that provide space on a server they own for use by their clients as well as providing Internet connectivity, typically in a data center. Web hosts can also provide data center space and connectivity to the Internet for servers they do not own to be located in their data center.
The World Wide Web is a giant collection of web sites which are from all over the world. The web server where your web site's html files, graphics, etc. reside is known as the web host. Web hosting clients simply upload their web sites to a shared (or dedicated) webserver, which the ISP maintains to ensure a constant, fast connection to the Internet.
