Pali and Sanskrit are closely related languages (just as Italian and Spanish are closely related languages).
Pali. The earliest Buddhist scriptures, called the Pali Canon, is written in a language called Pali. Theravada Buddhists regard these as the only authoritative account of Buddhist teachings.
Sanskrit. Sanskrit became the classical language of learning in India, having a status similar to the status of Latin in medieval Europe. The classical scriptures of Hinduism, and of Mahayana Buddhism, are written in Sanskrit.
Here are some Pali/Sanskrit equivalents
Pali | Sanskrit |
Nibbana | Nirvana |
Kamma | Karma |
Dhamma | Dharma |
Atta | Atman |
Sutta | Sutra |