What is a shell?
A shell is an interactive user interface to an operating system services that allows an user to enter commands as character strings or through a graphical user interface. The shell converts them to system calls to the OS or forks off a process to execute the command. System call results and other information from the OS are presented to the user through an interactive interface. Commonly used shells are sh,csh,ks etc.

Brief about the initial process sequence while the system boots up.
While booting, special process called the 'swapper' or 'scheduler' is created with Process-ID 0. The swapper manages memory allocation for processes and influences CPU allocation. The swapper inturn creates 3 children:
the process dispatcher,
vhand and
dbflush
with IDs 1,2 and 3 respectively.
This is done by executing the file /etc/init. Process dispatcher gives birth to the shell. Unix keeps track of all the processes in an internal data structure called the Process Table (listing command is ps -el).

What are various IDs associated with a process?
Unix identifies each process with a unique integer called ProcessID. The process that executes the request for creation of a process is called the 'parent process' whose PID is 'Parent Process ID'. Every process is associated with a particular user called the 'owner' who has privileges over the process. The identification for the user is 'UserID'. Owner is the user who executes the process. Process also has 'Effective User ID' which determines the access privileges for accessing resources like files.
getpid() -process id
getppid() -parent process id
getuid() -user id
geteuid() -effective user id