Tethering is physically connecting the host to the client with a USB cable, Hotspotting is essentially turning your device into a Wi-Fi router/access point and connecting to it with other devices WIRELESSLY.
People use those words interchangeably these days because tethering was mostly a thing of the past (Some phones still have it), so when someone says “Tether” they are most likely referring to a “Hotspot”
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