Universal binary is an application that will run on older Mac OS as well as the newer Intel-based Macintosh computers. The source code of an open source software (OSS) is available to the public free of charge, so anyone can copy and/or modify it. OSS isn't necessarily free (as in beer), but it is free (as in freedom of speech).
A bit of clarity for the above.
Universal Binary has nothing to do with which OS the program runs on. A universal Binary app is a single application that has been compiled to run on macs with either the older PowerPC processors (G4, G5) and the newer Intel based macs. Simply put it runs on both.
Open Source refers to the source code for a program. Open Source programs release the code to the public domain and invite anybody to suggest and make changes and improvements to the program and allow others to benefit. However, Open Source does not always mean free, Linux is open source but you can still choose to buy versions of Linux.
Applications that can run in Both OS X and the old OS 9 are called Carbon apps
In the !990s, apple switched from the Motorola 68K processors to the Risc based PowerPC. Applications way back then that could run on both of these processor families were called Fat Binaries