API means Application Programming Interface
An application programming interface (API) is an interface implemented by a software program that enables it to interact with other software. Source: Wikipedia
The two API's used widely to process 3D graphics are:
OpenGL
DirectX (Direct3D)
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OpenGL
OpenGL is a cross-language, cross-platform API as it is an open source API developed by Khronos Group. OpenGL is the industry's most widely used and supported 2D and 3D graphics. Sony's PlayStation 3 is one of the devices incorporating OpenGL to communicate with there graphics chips.
DirectX (Direct3D)
DirectX is a set of API's produced and owned by Microsoft exclusively, so it is often used only for Windows (95 and above), Xbox and Xbox 360 development.
This is my own visual representation of the 3D Graphics Pipeline.




