Interpolation is basically the extraction of the contained value of a given variable. Storing "hello" in the scalar* variable $foo,
$foo = 'hello';
will interpolate properly raw,
echo $foo;
or when double quoted,
echo "She said $foo";
but NOT when single quoted.
echo 'She said $foo'; // prints out: She said $foo
*scalar values are flat single values, like strings and numbers. Array values are also interpolated but by either a list array index starting at zero or an associative array key.