The difference between a "penalty shot" and a "free shot" lies in the circumstances under which these shots are awarded. A "penalty shot" is given after a foul occurs in the shooting area, allowing the player a chance to score from a designated spot without any interference. In contrast, a "free shot" is awarded for minor fouls or rule violations that occur outside the penalty area, and the defending team must allow proper distance for the attempt. Each shot has different significance in the context of the game.