What is the difference between "character" and "characterization" according to the paragraph below? Character is essential to plot. Without characters Burroughs’s Tarzan of the Apes would be a travelogue through the jungle and Faulkner’s “A Rose for Emily” little more than a faded history of a sleepy town in the South. If stories were depopulated, the plots would disappear because characters and plots are interrelated. A dangerous jungle is important only because we care what effect it has on a character. Characters are influenced by events just as events are shaped by characters. Tarzan’s physical strength is the result of his growing up in the jungle, and his strength, along with his inherited intelligence, allows him to be master there. The methods by which a writer creates people in a story so that they seem actually to exist are called characterization. Huck Finn never lived, yet those who have read Mark Twain’s novel about his adventures along the Mississippi River feel as if they know him. A good writer gives us the illusion that a character is real, but we should also remember that a character is not an actual person but instead has been created by the author. Though we might walk out of a room in which Huck Finn’s Pap talks racist nonsense, we would not throw away the book in a similar fit of anger. This illusion of reality is the magic that allows us to move beyond the circumstances of our own lives into a writer’s fictional world, where we can encounter everyone from royalty to paupers, murderers, lovers, cheaters, martyrs, artists, destroyers, and, nearly always, some part of ourselves. To understand our response to a story, we should be able to recognize the methods of characterization the author uses.

According to this paragraph, a character is a person in a story whereas characterization is a device used to create a character and make him or her seem vivid and real.
A character is literally just a figure in a story whose actions drive the plot. A character need not be a person—it can be an animal or even an object. All that matters is that the character provides a reason for a plot to occur.
Characterization usually occurs through dialogue, action, and what the author tells us outright about a character. These elements make a character seem like a real person. This keeps the reader invested and interested in the story.
So according to this paragraph, character and characterization are quite interrelated. One cannot exist without the other. Characterization cannot exist without character, and a character lacking characterization is nothing but an emotionless puppet the reader will be unable to care about.

The paragraph states that any person who appears in a story is a character. Without characters there would be no real story, the writer argues, because it is characters that make the plot of a story come alive. A character, however, doesn't have to have much of a role in a story nor does the character have to be very well rounded.
Characterization, on the other hand, is the process of making a character in a a story seem real. The author uses the example of Huckleberry Finn, a boy who might seem alive to us. A good writer like Mark Twain can create characters who seem like real people, but we need to remember that these figures are merely fictional constructs.
A story needs characters, whether they are one-dimensional or well-rounded. A good story, however, includes characters who are so well-characterized that they fell alive to us.

While considering the idea of "character," you may wish to also consider stock characters, archetypes, and stereotypes.
You can find information on stock characters here.
You can find information on archetypes here.
You can find information on stereotypical characters here.

Based on the included paragraph, it is a bit tough to specifically nail down the definition of "character" because the paragraph doesn't include a definition.  The paragraph states that characters are "essential to plot" and "influenced by events," but that doesn't concretely tell readers what a character is.  The Merriam-Webster dictionary defines a character as follows:

one of the persons of a drama or novel

That works okay, but I believe that the definition should be expanded a little bit.  The above definition seems a bit too limited to me because it gives the connotation that a character must be human.  I like to define a character as follows: a character is a person, an animal, or an imaginary being that participates in the action of a story.  
Characterization is what makes a character feel real and alive.  Characterization is the tool that authors use to make a character something more than a proper noun.  The paragraph that the question provides ends with a statement about authors using various characterization methods to build a character.  
The two methods of characterization are direct and indirect characterization.  Direct characterization happens when the narrator or another character directly tells readers information about a character.  This kind of characterization usually occurs early in a story.  The narrator will tell readers that a particular character has blond hair and blue eyes.  There isn't anything for a reader to deduce about the character.  That's what indirect characterization requires.  A reader or viewer must deduce the characteristics of a character based on that character's behavior, speech, appearance, etc.   
https://literarydevices.net/characterization/