1) A person possessing reading and writing skills that remain acceptable by the standards of the English language.
2) A member belonging to the nearly unknown society of persons able to string a sentence together without the addition of such terms including ur, hott, omg, lolz, wft, and so forth...
Literate: Did you see that girl knock out the math teacher?
Non-Literate: omg did u see tha mofo slung that fag in his fuckin ballz??