Volume guarantee an additional parameter available in many types of mechanical ventilators that allows the ventilator to change its inspiratory pressure setting to achieve a minimum tidal volume. This is utilized most often in neonatal patients who need a pressure controlled mode with a consideration for volume control to minimize volutrauma.
PEEP is simply a pressure that an exhalation has to bypass, in effect causing alveoli to remain open and not fully deflate. This mechanism for maintaining inflated alveoli helps increase partial pressure of oxygen in arterial blood, an increase in PEEP increases the PaO2.