Bits are a measurement of how fine the audio is measured digitally. its a mathmatic name for how fine audio can sound. for instace, an audio file at 4bits will sound like those very old computer sounds, or the music coming out of supermario on an old gameboy. CD's are at 16bits, but the industry standard in recording is 24bits, in other words, very high quality.
kHZ is a measue of how many times a sound is sampled. the higher, the better, although 196khz is the highest i've ever heard of. CD's play at 44.1khz, but when recording, go as high as your soundcard will let your record for outstanding quality (some will argue that you can't hear the difference, but its generally accepted as worth it). dont record higher quality than your audio card can record, otherwise its pointless to have the larger files.
Stereo means that different sounds can come out of the left/right speakers, mono means that the same sound always has to come out of both. in mono, things like panning are useless.
i dont know what broadcast wave is, but .wav is used on PCs, and AIFF is on macs. They are both uncompressed audio types, and i dont believe that there is any discernable difference in sound, but possibly in the amount of space they take up. i dont know which is the best, or if there is a best