A PSU is a device inside the computer which splits the incoming power and distributes it to all other parts of the computer. AC mains input is directly rectified without the use of a transformer, to obtain a DC voltage. This voltage is then sliced into small pieces by a high-speed electronic switch. The size of these slices grows larger as power output requirements increase.
Uninterruptible Power Supply (UPS)
A UPS is an electrical device that provides emergency short-term (usually 15-20 mins) power when the mains fail. It uses a large battery.