How do I know if my iPhone 3gs is Unlocked ? [Q]

I have an iPhone 3GS that i am using for quite sometime now . My question is – How do I know if my iPhone 3gs is unlocked ?  Someone told me it was – but how do you know ? And if not and I want to unlock – what happens to my 2 yrs contract with AT&T.

I’m 51-year-old grandmother – trying to keep up with Technology.
I am also learning to use Mac – any information would be great.

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