In storytelling in general and screenwriting specifically, an Act is traditionally a large segment of a story usually separated from other Acts by specific Turning Points within the storyline. A traditional screenplay is created by piecing together three Acts, which dates back to Aristotle's theories on what what structure was required to make a good story. These segments are separated with each representing a pivotal period in the storyline.
The common segments in a traditional 3-Act screenplay storyline are: The Setup, The Confrontation, and the Resolution.
The Setup Act should include and a conflict or incident that need a resolution. It is within this Act that the Protagonist is introduced, as well as the Antagonist force that will attempt to keep the Protagonist from achieving his or her goal.
The Confrontation Act is the journey the Protagonist must make towards the goal. This is the largest section of the screenplay and is fraught with complications.
The Resolution Act is last ditch effort by the Protagonist towards the goal. It is within this Act that we find the Climax or major battle with the Antagonist and the Resolution itself.