I think this is a reasonable question; he's not asking "what is opto-isolation", but rather "why do PLC I/O modules use opto-isolation".
Consider, Neil, that the field wiring for a typical industrial logic controller is, electrically speaking, a NASTY environment. There are often mixed signals (0-10V analog, 24 VDC discrete, and 120 VAC discrete often share the same cabinet), induced voltages, spike voltages, and the occasional short circuit that can occur.
If the Input and Output circuits on a controller shared the same common point as the controller's internal power supplies, it would be easy for these disruptive signals to carry over into the delicate 5VDC digital circuits of the logic controller's CPU, memory, and bus systems.
Instead, opto-isolators are typically used to separate the field circuitry in an I/O module from the internal logic circuitry. Typically the withstand level of this isolation is 1700 to 2500 VDC; you could assert that level of voltage on an Input module and you'd fry the module itself, but you wouldn't affect the CPU. This doesn't make the I/O systems bulletproof, but it helps a lot !
Isolation between the individual channels of an I/O module is a different topic, so I'm not going to address it here.
Good luck with your class !