Exercise

From my understanding the day to day stuff is what you use to determine your daily activity level. For example, I work in a chemistry lab and I'm on my feet for at least part of the day (not to mention walking a couple blocks to and from the bus stop for transportation) so I put mine as "lightly active." Now when I go to the gym in the afternoons I log that as exercise. That's the set-up I've deduced from lurking around the forums the past couple of weeks lol.

I would consider that more of activity level. Exercise is what you go out to specifically do, extra work, etc. For example, I walk 4 miles every Saturday & Sunday. That's walking I specifically set time for and do. I wouldn't consider walking around the house, doing chores, etc exercise, because that's considered daily living. I'm not going out of my way to specifically do them.

While walking can be a legitimate form of exercise, but just walking around in general taking care of your day to day is/should be included in your activity level.

When I started back into fitness, I did so with just walking...but it was a very deliberate activity for which I put walking shoes on and went out and walked at a pretty good clip for an extended period of time in an effort to improve my cardiovascular fitness...I logged that as exercise because it was a deliberate effort to get up and do something beyond my daily norm and it was done with a deliberate level of effort for a deliberate period of time. Just milling around the house taking care of your daily is already accounted for in your calorie goals and isn't deliberate exercise.