Dofollow : These links allow search engine crawlers to follow a link to give it a boost from search engine result pages and to pass on the link juice (reputation passed on to another website) to the destination site.
Eg : <ahref=”http://www.example.com/”>Example</a>
Nofollow : These links don’t allow search engine crawlers to follow the link. The also doesn’t pass on any link juice to the destination domain.
Eg : <ahref=”http://www.example.com/” rel=”nofollow”>Example</a>