close():- Suppose you have opened multiple browser windows with same driver instance, now calling close() on the driver instance will close the current window the driver instance is pointed to. But the driver instance still remain in memory and can be used to handle other open browser windows.
quit():- If you call quit() on the driver instance and there are one or more browser windows open, it will close all the open browser windows and the driver instance is garbage collected i.e. removed from the memory. So now you cannot use this driver instance to do other operation after calling quit() on it. If you do it will throw an Exception.
dispose():- I don't think there is a dispose method for a WebDriver instance.
You can go to the this selenium official java doc link for reference.