You are given that W= {(x,y,z) in R3| x- y+ z= 0} and are asked
1) Find the (it really should be 'an') orthogonal basis for [itex]W^{\underline{|}}[/itex].
2) Find the (it really should be 'an') orthonormal basis for [itex]W^{\underline{|}}[/itex].
and you say "I don't understand the difference between the two." Well, obviously the difference is the difference between "orthogonal" and "orthonormal". I assume you know that the "orthogonal" as well as the "ortho" in "orthonormal" means "perpendicular" so the difference is in "normal" which means "normalized" or, here, of length 1. In problem 1, you are asked to find a basis in which all vectors are perpendicular (orthogonal). In problem 2, you are asked to find a basis in which all vectors are also of length 1. After you have done problem 1, problem 2 is easy- just find the length of each vector and divide it by its length.
"Gram-Schmidt" allows you to construct an orthonormal basis out of any given basis but, as Dick said, here you don't really need that. The single non-zero vector perpendicular to both (-1, 0, 1) and (1, 1, 0) already is a basis. Just find its length and divide it by its length to "normalize" it.
That is, of course,