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Hi Reetika,

Difference between applied Physcolgy and  Physcolgy:-
1. Applied Physcology
Applied phycology is the use of physics principles and theories  to overcome practical problems in other fields such as business, Product design, Nutrition, law and clinical medicine.  So, you will be studying problem and solution. One can apply those solution in real life.
2. Physcolgy
Physcology is an appropriate discipline involving the scientific study of mental processes and behavior of human and animals. It helps to overcome the human problem like Mental problem,  Mental Illness and depression.

After knowing the difference between the two you have to know which is good for you and of course interested in.