STOP THE PRESSES!
Sorry, just felt like saying that. Let me try to clarify this (I'm an engineer and I'm here to help). Torque is force, force times distance is work, power is work per unit time. Therefore, horsepower is derived from torque. A dynomometer measures the amount of torque an engine can produce at each specific rpm. The equation provided by Jamestl is then used to determine the horsepower at each specific rpm.
This is possibly the best example I can think of to describe the difference between torque and horsepower. Suppose you have a heavy weight on the ground which will be lifted vertically with a hand-cranked winch. In order to just barely lift the weight, you must apply 10 lb of force on the winch handle, this creates torque (force X distance about a stationary point). Now, lets suppose you need to lift the weight 10 feet. This will require you to apply the 10 lb of force to the handle for a set number of turns, thus creating work. Now lets assume that you want to lift the weight to 10 feet in 10 seconds. This will require X amount of power. Now suppose you want to lift the same weight up to 10 feet in only 5 seconds. You will now have to apply the same 10 lb of force to the handle but now you will have to spin the handle twice as fast. This will require twice the power as the original lift.
An electric engine has a flat torque curve, ie it produces the same amount of torque at any rpm. An internal combustion engine is slightly different because of intake and exhaust variables and produces a torque curve with peaks and valleys throughout the rpm range of the engine. A forced induction (turbo, supercharged) engine has qualities of both. It's torque curve resembles a normally aspirated engine until the point when boost is created. From that point until the flow limit of the cylinder head is reached, the torque curve will be essentially flat.
Horsepower and torque can be difficult to understand and/or explain so if all else fails try this. Tell her that torque is what happens when you first hit the gas and horsepower is what happens when you leave your foot to the floor for a while.
Hope this helps to clarify things.