What Exactly Means "grinding" in Albion Online?

Player needs to grind until he hits some level and than there is no grind anymore and he can enjoy PVP without grinding. Which One? Player always needs to grind or something else.

You can just have T4 gear and go pvp all the time. There will be issues as other people will progress and you still be stuck with T4. I'd say you will always need to grind for getting better gear.

Fame = exp

Quests to gather resources or kill mobs just give you some extra silver no fame. I have to say cheap albion onlien gold will good help to your quests. PVP is just killing other players on the map will only give you pvp fame but won't advance you in any way. GvG will help your guild get a territory but won't get any fame as far as I know. 

Basically to advance in gear you need to do PvE. It can be in dungeons or field maps. There are no instance Raids with 40 people per say but there are Raid size dungeons that any group can enter. You should need about 15-20 well geared people to beat them.