In OSX Activity Monitor, what's the difference between 'free' memory and 'inactive' memory

In OS X Activity Monitor, what's the difference between 'free' memory and 'inactive' memory. My daughters 2Gb MacBook Pro is very slow, it probably needs more memory but there is almost 1Gb of 'inactive' memory but no 'free' memory when an application is opened.
Thanks

Free RAM is the one that has not been used by any application since you started up your Mac, and inactive RAM is the one that was used by an application and it is not in use anymore.
1 GB of inactive RAM is a lot, and it may be the cause of the slowness. There are a lot of apps that allows you to turn inactive into free RAM. I use FreeMemory, but have a look at the Mac App Store.
If you are a developer, you can do that with a command you can type into Terminal:
sudo purge

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