It's part of the permutation formula. In this specific case, it would look like 5! / (5-3)!. The exclamation point means that you multiply all the numbers from 1 to your number together. So expanded it would look like (5*4*3*2*1) / (2*1). The 2s and 1s cross out, leaving you with what minimiso gave.
Hope this helps!
Permutations are for when order matters while combinations are for groups. To use what was given in the chapter, numbers that can be formed are 135 and 153. In permutations, those are two different things because the order is different. In combinations, those are counted as one thing because even if they're in a different order, they have the same objects in them.
Hope this helps!
Wait but how is the answer 60? Shouldn't it 125?? Since there are 5 possible numbers for the three digits ?