The different between mediation and arbitration is:

Question $3$ options:

In mediation, the mediator hears both sides and makes a ruling. In arbitration, the arbitrator simply works to help the two sides come to agreement.

In arbitration, the arbitrator hears both sides and makes a ruling. In mediation, the mediator simply works to help the two sides come to agreement.

In arbitration, a retired judge is used. In mediation, a mediator with no legal training is used

In arbitration, the proceedings must take place at a court$-$house. In mediation, the activity can take place anywhere including in a hotel meeting room.