The difference is not always talent as some may say. There are many talented athletes that play DIII because of several reasons. One reason is academics and that most DIII schools are liberal arts schools that focus more on academics more than powerhouse DI programs. But one major difference between the two is that DIII cannot give out athletic scholarships. They can recruit but any scholarship given has to be based on academics. This is one reason why an athlete may choose to go to the school because the DIII schools usually have far better financial aid packages. But as far as talent goes DI is obviously better but DIII is not an extension of highschool. Its simply a lower form of Division I across all sports, kind of like the different sports classes in most high school state athletics.
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the top 3 in 3rd an 2nd and 1st division go up to, 2nd, 1st, and premier leagues. the Bottom 3 go DOWN 1 league hope this helps you i didnt have much time
d1 is the highest level of play, ONLY elite level players play at this league, d2 still has some talent but not near as much as d1, i believe theres more talent in d3 than d2