Inertia refers to the resistance of an object to change its state of motion, while interaction involves the influence that two or more objects exert on each other. For example, a stationary object remains at rest due to inertia until a force acts upon it, demonstrating its resistance to change. In contrast, interaction can be seen when two colliding objects exert forces on each other, resulting in a change in motion for both. Understanding these concepts is crucial in physics, as they describe different phenomena related to motion and forces. Clarifying these definitions helps distinguish their roles in physical scenarios.