For practical purposes, there isn't much difference between Graduated and Archived. They are both intended to be historical statuses. As a general rule, archived members are not included on reports. Some reports can include graduated clubbers.
The Graduated status is intended to identify clubbers who are no longer active due to their grade. There is an option in the New Year Setup to indicate if this happens after grade 12 or earlier. (For example, if you only run your club through T&T, then after grade 6 a clubber would be considered 'graduated'.)
The Archived status is intended to identify clubbers who are no longer active for reasons other than grade exception and not likely to ever be active again. (For example, a clubber who moved out of the area, or one who simply quit coming after a while with little likelihood of returning. Note: the archived status is not permanent, so in the event someone did return several years later, the status can be changed.)
Inactive is intended to be a shorter term reflection of status. Many clubs set all of their active members to inactive at the start of the new club year until the registration process is complete, at which time they change the member to active. Especially in this case, it would be important to not include clubbers that you know aren't coming back in your inactive list. An option in the New Year Setup allows you to choose to reset all members to inactive or not.
Having said all of that, it really is up to you how you use the statuses. The important thing is to be clear about what each status represents for your club and be consistent in how you apply them. You may find that simply using active and inactive is all you need.