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You need cable or DSL internet and a router connected to your modem if you also have a PC and then just connect an ethernet cable from you router to the PS2 ethernet port that looks sort of like a large phone plug
If for instance you have a PC connected to the internet with an ethernet cable at a cable modem you can unplug the ethernet cable to the PC at the modem and Plug in a ethernet cable from the PS3 to the modem and a connection to the internet is possible. If the PC and PS3 are close enough you can just unplug the PC ethernet cable at the PC and move it over to the PS3. The first time you do this you need to go to the PS3 network setting and auto set the network settings. When you are done using the PlayStation 3 you just unplug the ethernet cable for the PS3 from the modem and plug the PC cable back into the modem for the PC to go back online or switch the cable back if it was close enough. When you get tired of doing this just purchase a router and plug the PS3 and PC into the router and plug the router into the modem.
A LAN world means if someone is playing Minecraft using the same modem/router as you, they can come into your world and play with you.
You can't play it online. You need a iDevice to play it.
Minecraft can be played online or offline. When you play online, you need Internet connection and you can play with other people. When you play offline, you don't need Internet connection but you can only play by yourself.