Question

what is the difference between rotational motion and circular motion?

Answer 1

Circular motion describes the motion of a point. Eg: the motion of Earth's centre about the Sun can be considered in first approximation as a circular motion.
Rotational motion describes the motion of a solid ie a collection of point that cannot move independently. The motion of Earth about its axis is a rotational motion.

A car's wheel is a rotational motion, whereas the wheel's centre performs a rectilinear motion.

When a solid in in rotation about a fixed axis, then all points of the solid perform a circular motion about the axis.
In that case, the angular velocity of all the points is equal to the rotational velocity of the solid.
This simple case is probably the origin of the confusion between circular and rotational motion, because they seem to be one and the same thing here.