The statement that best explains the difference between first-person narration and third-person narration is:
"In first-person narration, the story is told by a character in the story, and third-person narration uses a point of view from outside the narrative."
This accurately describes that first-person narration involves a character who is part of the story telling the events, whereas third-person narration is told from an outsider's perspective that may or may not have access to the thoughts and feelings of the characters.