Woods are long-distance clubs, meant to drive the ball a great distance down the fairway towards the hole. They generally have a large head and a long shaft for maximum club speed.
Most golfers also carry 3 and 5 woods in their bag. A 3 wood has a loft between 15° and 18°, and a 5 wood has a loft between 20° and 22°. The higher the golf club number, the higher the loft. In addition, the higher the golf club number, the shorter the club. A 3 wood is generally 1/2" shorter than a Driver and so on with each successive club.
The 3 wood and 5 wood are commonly referred to as fairway woods, because they are most often used during the second shot of play, when you are supposed to be in the fairway of the golf hole (as opposed to in the woods!). All higher lofted woods (7, 9, 11, and so on) are commonly referred to as utility woods.