NAT is Network Address Translation. litterally it translates the network address from an internal network to an external network. this is most usefull when you have a network you want to connect to the internet, but you don't have a INAN* routeable subnet.
NAT has some side effects, depending on implemtation, like poor handling of UDP and incomming connections. NAT Transversal simply referse to certain programs and protocols attempts to overcome these limitations.
what is the context? perhaps we could provide more specific information.
*INAN Internet Names and Numbers, 192.168 is not a INAN address