Filet mignon is a French term meaning either cute or dainty fillet. It is used to refer to a specific cut of beef. It is called by other names in other countries, such as fillet steak in the UK. One confusing thing about beef cuts is the fact that the names can vary from country to country, and a cut in one country may be something different in another.
The filet mignon cut is taken from the smaller end of the tenderloin, although some butchers may call all the tenderloin cuts filet mignon (which they aren't, really). The cut is the most tender cut of beef, although not the most flavoursome, and is usually also the most expensive. Only a tiny amount of any beef carcass is actually filet mignon.
To add flavour to the steak, it is commonly served with a sauce, or has bacon wrapped around it when cooked. It is a rather odd shaped piece of meat, as it comes from the end of the tenderloin, so if a piece being sold as filet mignon looks like a normal steak, it may well be a cut from further up the tenderloin.
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