Understanding the equations P=pgh and Bernoulli's equation is crucial for solving fluid dynamics problems, particularly in calculating the height of a water fountain. The pressure difference between two points in a fluid, such as points B and C, is essential for determining the fountain's height. The pressure at the fountain's outlet is atmospheric, while the pressure in the connected reservoir is influenced by hydrostatic pressure. The discussion highlights that when applying Bernoulli's equation, it is important to maintain consistency in pressure calculations, whether using absolute or gauge pressure. Ultimately, the derivation and application of these equations must consider factors like fluid velocity and tube diameter to ensure accurate results.