I was talking to my Mom & Dad on the phone last night.  Even though I have a droid not an IPhone we were still able to communicate.  We started talking about all of the different Apple products:  Phones, Pads, Minis, etc.  Mom was wondering what the difference was between the IPad 2 and the IPad 3.  To my knowledge the difference is 1.  But it appears that it is a bit more complicated.  Watch this video and let me know if it clears things up for you?