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BAPI stands for Business Application Programming Interface. It is a library of functions that are released to the public as an interface into an existing SAP system from an external system.
RFC is the protocol used to call functions in an R/3 system by a caller external to R/3 or to call programs external to R/3 from an R/3 system.
Functions can only be called via RFC, if they are tagged as RFC functions in the SAP development workbench. They are then called RFC function modules.
BAPIs are complete sets of (BAPI) function modules that model a business application.
When you are familiar with web developments: RFC can be compared to HTTP and BAPIs are CGI applications.
In other words: A BAPI function is a function module that can be called remotely using the RFC technology.
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