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[E36] 3.45 to 3.91 diff Swap / Limited Slip Question

I have came across a 3.91 differential off a 325i with a 4 speed automatic.
Question is, will it fit my 320i with a 5 speed automatic tranny?  My 320i
has a 3.45 diff and I am guessing the 3.91 diff would improve acceleration.
Also, what does limited slip do?  Thanks in advance!

Regards,
Brandon Ong
Singapore
95' 320i Cabrio

ong2jr@domain.elided

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