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TGR
hugo7
Tl;Dr - if it's for your daughter get the free one from your school.
Long answer...
365 is an annual subscription. It comprises of the main office programs and 1TB cloud storage. You can also use it across a number of devices (you'll need to check how many). It's something like £70-80 vs £250 for a full license you own for one device.
The 1TB storage and multiple devices is the key selling point imo. However, if you don't need office on multiple devices in your home - ie daughter's laptop, your laptop, your wife's laptop, the home desktop, etc. it is less good value. Equally if you use other cloud storage, don't need it or don't need as much, again it's benefit reduces.