What does character set mean?

When we have applications that run globally but share a unique data base , it should be taken care to choose a character set while proposing or defining data base.
This is because there will different type of characters globally that has to saved in data base and understand them.
"WE8MSWIN1252 " is default character set data base considers when we create a data base , it has to be changed to "AL32UTF8" which is global character set.
There are different character sets available.
Note:- Usually developers find a fault after data base has been installed on client side.That is say suppose developer has created C1 character set initially on client side later required to change to C2 then we should pretty sure as C2 should be Super set of C1.
I mean all characters available in C1 should be in C2 else data corruption comes into picture because it may not find some characters.

When you create data base:-