Narrative and narration in films are the way in which the audience follows the plot. The difference between narrative and narration is only really clear when both are understood properly.
Narrative is basically the way we see all the events in a film unfold. E.g. 'Blair Witch Project'. A group of film students go into the woods to film a documentary about the myth of the Blair Witch. What we see is the people film everything that they do. We see (in a nutshell) them get lost, get scared and then looking at a wall.
Narration is the process through which a film conveys or withholds narrative information, the way the story is told. Narration concerns the actual arrangement and presentation of the story in the film, the way the film distributes story information in order to achieve specific effects. E.g. in the 'Blair Witch Project' the story conveys the idea that there is 'something' out there, but it withholds all the information on the thing by never showing anything out of the ordinary.
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