Fedora: Community based distro which contains ONLY free software and is free as in libre
RHEL: It's Red Hat's OS for Enterprise and Business. Is usually can be brought only with a Red Hat Subscription and so is effectively paid software. However you can anytime take its source code and compile it as your wish. CentOS for instance is 100% RHEL compatible free OS.
@desiibond: While that maybe practically true, however that's not correct since RHEL is used extensively on workstations and can even be used in a desktop while Fedora it self would make an excellent choice as an OS for servers as well.