Differentiation is just another way so saying find the derivative of a function.
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derivative means rate of change of one variable w.r.t one variable while in differentition rate of change of one variable w.r.t more than one variables.
The first stage of differentition of cells occurs during the development of what is called the gastrula. This is when cells begin to grow into endoderm, mesoderm, and ectoderm cells. These three different groups then go on to become all the different types of cells in all multicell organisms.