JPG uses lossy compression designed for photographs. It produces small files and is universally supported, but it cannot store transparency and loses a little quality each time it is re-saved. Use it for photos and scans.
PNG is lossless and supports transparency. It preserves sharp text and flat graphics perfectly, which is why screenshots and logos are PNG. The trade-off: photos saved as PNG are much larger than JPG with no visible benefit.
WEBP was designed to replace both: it produces smaller files than JPG at the same visual quality and supports transparency like PNG. Every current browser supports it. The only caveat is some older desktop software cannot open it - convert to JPG or PNG for those.
Use the image converters on Files Office - the conversion happens on the server and the original file is never modified. Remember: converting JPG to PNG cannot recover quality already lost, and PNG to JPG flattens transparency onto white.
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