Chapter 2- Understanding Policy, Group, Role, User
Simply, Role and User define a identity of whoever is using aws/aws service. Their permissions are provided by policy or a policy group
eg. harsh wants to be member of developer group so harsh will make a IAM user on his name, attach himself into the group has all policy related to a developer (someone made this earlier) and he will have all the permissions from all policies from this group this group contains multiple policies each define which services harsh can read/write/delete/run etc.
so in order to give someone permission you can give them a policy or put them in a policy group which gives them a bunch of policy permissions all at once.