Nearest interpolation between 2 texels means to take the texel whose center is nearest to a given coordinate to draw or, in other words, the texel the coordinate is matching.
Linear interpolation between 2 texels means to mix the colors of them using more of the nearest texel and less of the others according to the distance to a certain coordinate.
Nearest interpolation between 2 mipmap levels consist in taking the mipmap whose size fits better the size of the image to draw
But I cannot understand how linear interpolation works with mipmap levels.