A variable is a storage location and an associated symbolic name (an identifier) which contains data, a value.
A parameter is a variable passed to a function.
An argument is data (a value) passed to a function.
$variable = 'data/value';
function first($variable){ ... }
function second('data/value'){ ... }
function third(16){ ... }
In function first we are passing a parameter.
In function second and third we are passing arguments.