Shared hosting basically means just that, shared. Basically your hosting provider will give you access to a hosting panel with which you can deploy your site with. This panel will be running on a dedicated server.
And your website will be sharing resources along other sites that are hosted on this server.
Think of your Windows PC at home. You can have multiple user accounts on the same pc. It's kinda like that. The websites are the users in shared hosting.
Only difference, all the websites are running at the same time and they are all sharing the same resources.
"Wordpress Hosting" basically means a virtual private server (vps) that is managed by your hosting provider. So, instead of sharing the resources, you now have dedicated compute resources (CPU cores, ram etc) for your website (even tho it's virtualized).
What is the best option depends on what you are doing. If you are running a smallish site with minimal traffic then shared hosting should be enough.