Fats are a type of lipid found in many foods that provide energy, insulation, and aid in nutrient absorption. There are two main types of dietary fats - saturated and unsaturated - which differ in their molecular structure and health effects. The document discusses the functions of fats, sources of saturated and unsaturated fats, visible versus invisible fats in foods, and recommends including unsaturated fats while limiting saturated fats in the diet.