Question: Does anyone know how we can differenciate Order Status And Order State ?

Answer: 
The `order state` and `order status` are usually mixed up since their names and functions are similar.

An order state is a position of an order in the current processing flow. Magento has the following pre-defines order states:

```
New
Pending Payment
Processing
Complete
Closed
Canceled
On Hold
Payment Review

```

Each order state can have one or more order statuses assigned to it. This makes processing easier.

For example, a “Pending Payment” order state can have the following order statuses:

```
Pending Payment Paypal
Pending Payment Card
Pending Payment Store Credit

```

Magento provides a way for create custom order statuses. For this:

```
1. Admin Panel>System>Order Statuses;
2. click the "Create New Status" button;
3. fill necessary information in the "New Order Status" page;
4. click "Save Status";
5. assign a recently created  status to a particular order state.

```
The “order state” and “order status” are usually mixed up since their names and functions are quite similar.

* 1,Order Status. All orders have an order status that is associated with a stage in the order processing workflow
* 1,An order state is a position of an order in the curent processing flow.
* 2,Magento Order State is used to define processing order
* 2,Magento Order Status is used by the administrator to know the exact order flow

[This article you can refer more about details](https://amasty.com/knowledge-base/what-is-the-difference-between-magento-order-status-and-order-state.html)