Hey there little buddy! So, a proxy ARP is like when someone pretends to be you and answers the phone for you. Imagine if your friend called you on the phone, but their phone number got mixed up and it actually called your neighbor's phone instead. Your neighbor doesn't know who your friend is or what they want, but they can pretend to be you and answer the phone call for you. Your friend can still talk to your neighbor and think they are talking to you.
In computer terms, this is similar to what happens with proxy ARP. Let's say there are two computers connected to the same network. Computer A wants to communicate with Computer B, but doesn't know where it is located on the network. However, there is a third computer (Computer C) on the same network that knows where Computer B is located. Computer C can "pretend" to be Computer B and answer for it. This means that Computer A can communicate with Computer B through Computer C, even though it doesn't know where Computer B is located.
So, in summary, proxy ARP is like a neighbor answering the phone for you, but instead of neighbors and phones, it's computers helping each other communicate on the network.