I've actually asked this question in interviews before, so I have a good idea of what the interviewer is probably looking for in an answer. The article you cited states,
Interface is also a class containg methods which is not having any definations.Class does not support multiple inheritance. But interface can support.
Ignoring the grammatical and spelling problems here, an interface is not a class. The two are significantly different concepts. If an interviewee were to give me this answer, I would think they had a pretty poor understanding of the subject (or at least that they were very bad at communicating it).
A much better way of answering this kind of interview question would be:
An interface is a type which may contain event, method, property, or indexer declarations, but not their definitions. Classes do not support multiple inheritance, but interfaces do. Also unlike classes or structs, interfaces may not define constructors or be directly instantiated; rather, an interface may be implemented by a class or struct, which may then be instantiated.
You might also point out that unlike classes, generic type parameters in interfaces may be declared as covariant or contravariant.
Interfaces are just one of the many ways programmers use abstraction (abstract classes are another). They allow you to specify the general contract a class (or struct) must satisfy, without knowing anything about how it satisfies that contract.
Now regarding your confusion about entities… The term 'entity', at least within the context of .NET applications, generally refers to classes declared in an Entity Framework model, which is used for interacting with databases via code. Read more about Entity Framework: