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Essentially, woodworkers need to know that you can do almost anything with only three grades of sandpaper: 80, 120, and 220. 80 is the coarsest grit and is used for leveling out rough wood caused mostly by machine marks from saws.
From there, move up to a 120 grit sandpaper to smooth out the marks left by the coarse 80 grit paper. Finish off your wood with a 220 grit (fine) sandpaper.
You can learn a lot more about sanding and get more detailed, but for most of us, we really dont need to bother sanding past 220 grit. Let your finish provide the smooth feel of your project.