An observer, as the name implies, can see what is in a student's account. The observer can look at grades, see due dates, etc. This is typically the role a parent has. They can check up on their student, but can't make changes or complete activities.
A proxy logs in as the student. The proxy can see and do everything the student can. So a proxy can actually make changes and complete activities in place of the student. In my experience, this role is typically used for tech support. For example, if a student complains about some behavior in Buzz, you can proxy in as the student to see if you can replicate the behavior.
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An observer, as the name implies, can see what is in a student's account. The observer can look at grades, see due dates, etc. This is typically the role a parent has. They can check up on their student, but can't make changes or complete activities.
A proxy logs in as the student. The proxy can see and do everything the student can. So a proxy can actually make changes and complete activities in place of the student. In my experience, this role is typically used for tech support. For example, if a student complains about some behavior in Buzz, you can proxy in as the student to see if you can replicate the behavior.