Jesus, (did you see what I did there?), no-one has still explain it in simple terms. I'll try.
1. Humans fight machines, try to win by blocking out sun, machines win, all humans on surface bred for power, all plugged into the matrix, believe it to be real life. Some humans escape and start revolution. Stories of 'the one' surface, humans outside, look for the one. Find the one, start fighting. Turns out Neo can bend the rules like agents can, is he the one? Smith (who is a software program like everything else), runs off the rails and becomes a virus. The oracle is a software program helping the humans. Neo eventually destroys smith.
2. Neo is now all powerful in the matrix, smith has also developed to point where he is becoming very powerful. No longer under control of the machines. The revolution finds many other software programs who are not governed by the machines. Everyone gets involved, lots of fighting. Eventually neo meets the architect who explains that this process has happened many times before, the software program is being refined and tested each time. Humanities unique points are causing the machines issues. Neo takes a different path to all previous neo's, saves trinity, things change, neo become all powerful in the real world.
3. Machines try to destroy zion in the real world, fight continues both in the matrix and in the real world. Lots of fighting. Neo becomes like jesus, meets machine boss, agrees to destroy smith for peace to all. Machines agrees, neo kills smith with his AVG anti-virus, everyone lives happily ever after.