Answer Posted / ajay gupta

application state is a state where we hav the information
that is global for the application,
where as
session state is a state which is maintained as a
per-client basis.
whenever a user first accesses a page a session id is
generated by asp.net.
that session id is then transmitted between the client and
the server via Http either with the help of client-side
cookies or encoded in a mangled sessions of the urls.
so the next time the users accesses,state associated with
that session id can be viewed or modified.

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