An exaggerate is when someone makes something seem bigger or more important than it really is. We all do it sometimes, especially when we want to get attention or make our stories sound more exciting.
When people say they're going to help out with a big project, but then you realize they only brought one small cup of coffee to put on the table, that's an exaggerate. They were being a bit too optimistic about their contribution. It can also happen when someone talks about how terrible a situation is, and it turns out not as bad as they said. Maybe they just wanted sympathy or attention from others. We usually know an exaggerate because it sounds more dramatic than what really happened.
To overstate, to describe more than is fact.
Example: He said he'd slept with hundreds of girls, but I know he's exaggerating. The real number is about ten.
