in reply to comparign two files

Your examples didn't make this clear... what would you want as output if your two input files were:
-- FILE 1 -- -- FILE 2 -- Monk apple one Monk apple one Punk apple two Punk peach two John peach three John peach two Jane plum three Jack plum three
The question is: Which of the following best describes your task? If your task is like the first one, you could check out a command line utility script that I posted here. If it's the latter, a different approach would be needed.