PGP stands for Pretty Good Privacy - A Cryptographic Software Package written by Phil Zimmermann of MIT
You can use PGP to encrypt the files on your computer with a password so that no one else can read them. You can also use PGP to encrypt your e-mail so that none other than the intended receipient can read it. You can also sign your documents with a tamper-proof digital signature to prevent someone from fooling around with false documents. It also enables you to manage your keys for your day to day operations