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Broadly speaking they are similar in that both mean competence. The subtle difference is that ability is often attributed to living things, as it contains the additional meaning of proficiency and talent. Eg: Sam's ability to speak in public. Capacity, suggest not only the potential, but also the power to produce, experience, contain something, notion of volume, e.g. Sam's capacity to forgive.
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Competence would be a ratio, Capacity is max amount, volume, etc..
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