Gauging: It is defined as

acceptability of the given

dimension, whether it lies in the
specified limits or not.
Tolerance: It is the permissible
deviation from nominal size.
It is the difference between
the upper limit and lower limit.
It is the maximum permissible
variation in a dimension.
The tolerance may be
unilateral or bilateral.
Unilateral Limits occurs when
both maximum limit and
minimum limit are either above
or below the basic size.
Eg: 25 +0.18 25 -0.10
+0.10 -0.20
Bilateral Limits occur when the
maximum limit is above and
the minimum limit is below the
basic size.
Eg: 25 0.04