Blood group is determined by the presence or absence of antigens on red blood cells. The ABO blood group system divides blood into four main groups based on antigens present: A, B, AB, and O. Blood type is important for blood transfusions, as incompatible blood can cause agglutination and other serious reactions. The Rh system further divides blood into Rh-positive or Rh-negative groups depending on the presence of the D antigen, and Rh incompatibility can cause hemolytic disease of the newborn. Determining blood type through antigen-antibody reactions is crucial for safe blood transfusions.