"Arrangement" sounds like order does not matter. (I'm an ESL student)Thus, in this case, it should be combination. For example, if you have two yellow and one red, if order doesn't matter (combination), you only have one case: 2 Ys and 1 R. But if order matters (permutation), you have three cases: YYR, YRY, RYY. Meaning that you have more cases in permutation. If you look at the two formulas, there is k! in the denominator of combination. That means you have less.
P = n!/(n-k)!
C = n!/[(n-k)!k!]
A special case of permutation is circular permuation. For the above example, YYR and RYY would be considered the same.
A few examples to give you a better idea: (n first, k second in my text)
1. How many ways can one pick 3 books out of his 10 books? Combination of 10, 3.
2. How many ways can one arrange 3 books from his 10 books on a shelf? Permutation of 10, 3.
3. How many ways can 6 people be lined up? Permutation of 6, 6.
4. How many ways can 6 people be seated around a circular table? Circular permutation of 6,6. In this case, it is (6-1)!/(6-6)! = 5!
Hope it helps.