- A file refers to a disk file, terminal, printer, or tape drive. Data is transferred between a program and file via a stream, which is temporarily stored in a buffer. - To access a file, it must be opened using fopen() and closed with fclose(). Different modes like "r", "w", and "a" determine if the file can be read, written to, or appended to. - Example C code is provided that opens a file for reading and writing, reads/writes characters and lines one at a time between files, and closes the files. Functions like fgetc(), fputc(), fgets(), and fputs() perform the read/write operations.