a) Implication of product differentiation in Monopolistic Competition is that buyers of a product differentiate between the same product produced by different firms. Therefore, they are also willing to pay different prices for the same product produced by different firms. This gives some monopoly power to an individual firm to influence market price of its product.
b) Implication of perfect knowledge in prefect competition is that no firm is in a position to charge a different price and no buyer will pay a higher price. As a result a uniform price prevails in the market.
