Answer:
2 and 7 are alternate interior, along with 5 and 4. They are inside the space created by the parallel lines. 1 and 8 are alternate exterior, along with 6 and 3. They are outside the space created by the parallel lines.
Difference:
Alternate exterior angles are created in the space outside the parallel lines on alternating sides; interior angles are created in the space inside the parallel lines.
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