A rather challenging question to answer succinctly, but I'll attempt it. (Bear in mind these answer to these kinds of questions are still the subject of debate amongst developers.)
In MVC, the ViewModel provides all the information necessary for a View to be rendered. The data it contains is created using data defined in the Model. The View reads the ViewModel and renders the output. Input from the View is passed to the Controller, which manipulates the Model, constructs an appropriate ViewModel, and passes this to the View for rendering.
In MVVM, the ViewModel serves the same function as it does in MVC, but it also replaces part of the MVC Controller by providing commands which allow the View to manipulate the Model. WPF databinding manages the updating of the View according to changes in the ViewModel (and this effectively replaces the remaining function of the MVC Controller).