Explain how electric energy is converted into heat energy ?
Let's begin by describing what resistance and current is... Resistance is basically the opposition provided by a material (conductor) to the flow of current through it. The resistance of a material depends upon its shape and physical configuration, so, two conductors made out of the same material can have varying resistance on account of their different physical profiles.
Now, current, can be described as the flow of charges (or electrons) through a material (like a conductor) from lower negative potential to higher positive potential, under the application of external electrical field or voltage. It depends upon the rate of flow of charge and the amount of potential difference applied across the ends of a wire.
Let us picture a bunch of (free) electrons which, due to the presence of an external field, move from the negative terminal of the battery to its positive one through a wire connecting them. These free electrons in motion encounter other free electrons, bound electrons and atoms of the material on their way towards the positive terminal. The encounter, in most cases, results in a collision and hence a loss of energy of the free electron. So, a free electron can undergo many successive collisions and thus continuously loose some energy in the form of heat. This loss of electrical energy in the form of heat happens in a bulk, for all free electrons. This bulk effect manifests itself as the electrical resistance which is an inherent property of the material.
Now, the amount of thermal energy generated is proportional to the resistance provided by the material (Joule's Law of Heating). Thus, we can say that heat loss in conductors is a lot less than in insulators.