I really will be brief here...
RPM is the abbreviation for "rotations per minute." It is the speed of your cars crank shaft. Normal everyday car engines spin between 0-7000 RPM. This is gauged by a TACHOMETER. (the gauge on your Display in GT3) At the upper limit of the tachometer, there is a red section that indicates that your crankshaft is spinning too fast, and your engine is in danger of breaking down. This is known as the "redline." Racing cars have much higher redlines because their engines are built to FAR more exacting standards, and have greater stress tolerence. (but are VERY expensive to build) Two years ago, the Mclaren team was running their V-12 engines to 19,000 RPM to try to keep up with the Ferarri Teams. 19,000 is REALLY fast.
The speed of the crank is reduced by the gear ratio in your transmission, which applies TORQUE to the tires.
Torque is force * distance. The way to imagine this is with a wrench. If your wrench is 1 foot long, and you apply 50 Lbs of force on the end of the wrench, the bolt youare turning has 50 Lb/ft of torque applied to it. Get yorself a 3 foot wrench, and you have 150 Lb/ft of torque.
Horsepower is different.
Horsepower (roughly) = [(distance you drive (ft) / time to get there (s) ) * weight (lb)] / 550 (not exact) (to convert units)
In the real world, there are issues such as traction and engine slip to consider, but this is the formula. You'll notice that it is in essence, the formula for acceleration.
A mack truck crank spins 1000 times, and is reduced by a 5:1 gear ratio, the wheel spins 200 times, but it applys all the torque in the crank in those two hundered revolutions. (not real numbers)
An F1 car's crank spins 1000 times, and is reduced by a 2.5:1 ratio, the wheels spin 500 times, but the torque generated by the crank is spread over 500 revolutions, thus you get 40% of the torque at any given moment. (also not real numbers)
So you may be wondering why Torque and Horsepower on car engines is usually very close numberwise. Well, its a coincidence. Change the units and they are nowhere near each other.
Hope that explained it