Okay kiddo, so Panchala is a place in ancient India where lots of people used to live. It was divided into five parts, which is why it is called "Panchala", which means "five parts" in the language of that time. Each part had its own ruler, but they all worked together to keep the place running smoothly.
Panchala was very important because it was located on an important trade route. People would travel through Panchala to buy and sell goods from other places. It was also known for being the birthplace of some famous Indian historical figures, like Bhishma and Draupadi.
Does that make sense, kiddo?