Your
Google Cloud Platform project is a basic unit of organization to which every Google Cloud Platform service is attached to.
Each project can choose to enable any of the platform's features, including App Engine. This lets a project have up to one application. To enable App Engine on your project, simply visit
https://console.cloud.google.com/appengine. Your application can consist of
up to 20 services.
Each
service is accessed through a different URL and while services can share many of App Engine's features at the application level, they are entirely independent from one another. Note that by default App Engine will use the "default" service for everything, so you don't have to care about services until you want to. Each service can have
up to 120 versions.
Versions are versions of a specific service. They hold the actual code with which the application functions. Versions of the same service can be in any language you want and even perform entirely different functions. You get to choose which version(s) you want to be used for serving traffic to your application.
Finally instances are the actual servers answering requests made to your application. They are created using the code of the currently active version(s). Versions can have as many active instances as is required to serve their traffic. How many instances you have can have active can be
configured in app.yaml.
This is a fairly basic explanation of course, tell us if there's parts of it you have a problem with.