RAID 5 is usually seen in server environments. Raid 5 must have at least 3 physical drives...but is usually many more. Based on the total raw storage space, a number of drives are setup as Parity Drives. In short, the parity drives collect bits of data that are being written to the actual storage drives..but they in turn do not show up as usuable storage space.
In the event of a drive failure...most being hot swappable, a new drive is inserted to replace the failed one, and the Parity drives rebuild the new drive back to it's orignal condition from the data that they have stored.
Quite a complex process but great for mission critical applications!!