Example (note the case):
string s = \"Hello world!\";
String s = \"Hello world!\";
What are
C# is a language which is used together with the CLR.
string is a type in C#.
System.String is a type in the CLR.
When you use C# together with the CLR string will be mapped to System.String.
Theoretically, you could implement a C#-compiler that generated Java bytecode. A sensible implementation of this compiler would probably map string to java.lang.String in order to interoperate with the Java runtime library.