The Application Programmer's Interface to Python gives C and C++ programmers access to the Python interpreter at a variety of levels. The API is equally usable from C++, but for brevity it is generally referred to as the Python/C API. There are two fundamentally different reasons for using the Python/C API. The first reason is to write extension modules for specific purposes; these are C modules that extend the Python interpreter. This is probably the most common use. The second reason is to use Python as a component in a larger application; this technique is generally referred to as embedding Python in an application.
Writing an extension module is a relatively well-understood process, where a ``cookbook'' approach works well. There are several tools that automate the process to some extent. While people have embedded Python in other applications since its early existence, the process of embedding Python is less straightforward than writing an extension.
Many API functions are useful independent of whether you're embedding or extending Python; moreover, most applications that embed Python will need to provide a custom extension as well, so it's probably a good idea to become familiar with writing an extension before attempting to embed Python in a real application.