There are several plugins for this.
Acts_audited
acts as audited creates a single table for all of the auditable objects and requires no changes to your existing tables. You get on entry per change with the changes stored as a hash in a memo field, the type of change (CRUD). It is very easy to setup with just a single statement in the application controller specifying which models you want audited.
Rolling back is up to you but the information is there. Because the information stored is just the changes building the whole object may be difficult due to subsequent changes.
Acts_as_versioned
A bit more complicated to setup- you need a separate table for each object you want to version and you have to add a version id to your existing table. Rollback is a very easy. There are forks on github that provide a hash of changes since last version so you can easily highlight the differences (it's what I use). My guess is that this is the most popular solution.
Ones I have no experience with: acts_as_revisable. I'll probably give this one a go next time I need versioning as it looks much more sophisticated.