The number of ways in which $n$ different things can be distributed into $r$ different groups is $$r^n - \binom{r}{1} (r - 1)^n + \binom{r}{2} (r - 2)^n + \ldots + (- 1)^{r - 1} \binom{r}{r - 1}$$.
This is what my book wrote. Now, how to prove this? Also, as the title goes, what is the difference between distribution & arrangement?