PS1 - to set the prompt string, ofcourse!
PS2 - to set the subshell prompt string, which by default is ">", when we enter a command half and press enter, we get the subshell prompt string which is >, then we can complete the command and press enter, it runs. We can change the > to something by modifying this var
PS3 - mostly used in ksh, this is used to define the prompt string displayed by 'select' command, which creates a menu, so in the menu, the prompt string for each option can be defined by changing this one
PS4- we can debug a shell script by putting a set -x while running it, this enables to print each command and then its results a + sign is put before each command, this "+" prompt string can be changed by defining the PS4 var.