The PS3 comes with both wired and wireless networking ready to go. You still need either a wired or wireless network (or both) for this to work. You don't get free internet. ;)
WiFi allows for wireless internet connection, meaning that it your PS3 does not need to be plugged into the router. WiFi is only availabe to those with wireless routers. If you don't have a wireless router, then just simply plug in the ethernet cable to the back of the PS3 and router.
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