This simply means that under ideal conditions i.e. no wind, match-grade ammo, clean barrel, and a vise or a benchrest used to eliminate shooter error, the gun is capable of producing a group of shots whose center points (center-to-center) fit into a circle, the average diameter of circles in several groups can be subtended by that amount of arc. For example, a 1 MOA rifle should be capable, under ideal conditions, of shooting an average 1-inch groups at 100 yards. Most higher-end rifles are warrantied by their manufacturer to shoot under a given MOA threshold (typically 1 MOA or better) with specific ammunition and no error on the shooter's part.