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A range is a group of two or more cells that can be referenced as a single block using the top left and bottom right cells. The addresses of the two cells are separated by a colon to form the range reference. So the cell reference A3:A10 refers to all of the cells A3, A4, A5, A6, A7, A8, A9 and A10. The cell reference C12:E14 refers to cells C12, D12, E12, C13, D13, E13, C14, D14 and E14. A range reference is always used in a function, like in the examples below:

=SUM(A3:A10)

=AVERAGE(C12:E14)

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