Its an extremely weak drink. By volume rather than by liquid measure which means basically that 100cc of the substance contains no more than 0.5cc of alcohol. In other words it won't make you drunk
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5% refers to the ratio of alcohol in the mixture. If this refers to a beer, there are 5 parts alcohol per 100 parts beer. The other 95 parts are mainly water with other ingredients that produce the unique flavor. "By volume" indicates the ration was determined by measuring volumes rather than by weight. Since water is denser than alcohol, a beer with 5% alcohol by weight would have a higher alcohol concentration than one that is 5% by volume.
It is a method for determining how much alcohol is in a beverage. The two primary methods are by volume and by weight. The calculation is a bit challenging and there is no requirement to provide the measurement on beer in most places.