As Diane said, the grade gives an indication of the activity or amount of inflammation and the stage represents the amount of fibrosis or scarring.
stage 0 indicates no fibrosis; stage 1 indicates enlargement of the portal areas by fibrosis; stage 2 indicates fibrosis extending out from the portal areas with rare bridges between portal areas; stage 3 indicates many bridges of fibrosis that link up portal and central areas of the liver; and stage 4 indicates cirrhosis.
The grade is assigned a number based on the degree of inflammation, which is usually scored from 0-4 with 0 being no activity and 3 or 4 considered severe activity.
There are 4 stages and 4 grades. Stages tell how much fibrosis there is and grades tell how much inflammation there is. You are at the beginning stages of damage. Since you are so young, you have plenty of time to wait for the newer drugs that will give you a much better chance of clearing the virus.
Hang in there,
Diane