Answer:
Both words are used to talk about how long the boundary is of a 2D figure. Think of circumference as a special case of finding the perimeter. The term circumference refers to the perimeter of a figure without sides or something like a circle or arc.
So if we were to look at a rectangle and try to determine how long the boundary is we would use perimeter. On the other hand, if we have a circle we have no way to track how long each side is therefore we use circumference.