This is a collection of settings and permissions to give users access to various functions, configurations etc..
This extend users' functional access without changing their profiles.
Users can have only one profile but, depending on the Salesforce edition, they can have multiple permission sets.
This can give some additional access apart from the access it gets because of its profile. So, it extends access apart from the permission it gets because of its profile.
Reference: https://help.salesforce.com/s/articleView?id=sf.perm_sets_overview.htm&type=5
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