Okay, Hexgear is completely right, but for anyone who would like that more newbie-friendly terms, here goes:
The "Set Object Interpolation" command sets how long it takes an object to change from one frame to another when you use something like the "Set Object Frame" command. If your interpolation value is 50, it will take two syncs for your animation to reach the frame you told it to go to. A value of 25 will take four syncs, 10 will ten syncs, 1 will take one-hundred syncs, etc, etc.
As the animation is interpolated over this time (ie, the computer calculates in-between frames for you), it is useful for smooth transitions between animations.
Hope this helps the less advanced users.
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