When we parse a sentence one word at a time, then it is called a unigram. The sentence parsed two words at a time is a bigram.
When the sentence is parsed three words at a time, then it is a trigram. Similarly, n-gram refers to the parsing of n words at a time.
Example: To understand unigrams, bigrams, and trigrams, you can refer to the below diagram:
Therefore, parsing allows machines to understand the individual meaning of a word in a sentence. Also, this type of parsing helps predict the next word and correct spelling errors.