What is the difference between education and literacy ?

Education,generally,can be called a system in which there is an exchange of systematic knowledge and instructions. Education can be about any topic,like,politics,economics,law,cooking etc.

Literacy is defined as the ability to read and write.

Being educated means you have gained knowledge about various subjects and topics,whereas being literate means you are able to read and write.If you are literate then you can gain more education.