SqlConnection represents a connection to a SQL Server database, SqlCommand represents a SQL statement or stored procedure, and SqlDataReader represents the results of a query. The @value1 and @value2 are parameter placeholders, which will be replaced with actual values when the SQL statement is executed. The AddWithValue() method is used to set the values of the parameters. It is important to use parameter placeholders to avoid SQL injection attacks, where malicious users can inject SQL code into your queries.