For what it is worth, I hadn't come across the terms interior and exterior prostate margin either.
My understanding pretty much accords with Steve86's. The prostate is surrounded by a very thin boundary layer, outside which is a neurovascular layer (also pretty thin) i.e.containing a network of fine blood vessels and nerves. Among those nerves are the ones supplying the penis.
When "sparing nerves" the surgeon tries to leave the neurovascular layer behind when removing the prostate underneath. There is a risk when doing so that the cut won't be neatly outside the prostate boundary, so that wouldn't be done if the original biopsy indicated there was cancerous tissue just under the boundary. However the biopsy is just a collection of samples at a few points, there can be cancer just below the surface where no sample was originally taken which is only seen during pathology on the removed prostate.
The pathology on the removed prostate after surgery should show the boundary layer all the way round - if there is a bit of boundary missing it is a positive margin. The implication is that a tiny bit of boundary and the prostate tissue next to it is still in the patient and a future risk, more so if there turned out to be cancerous cells around that region.
I think what LynEyre is saying is that there is a possibility that when the prostate if prepared for pathology (in a wax block from which microscope sections can be cut) some of the prostate edge hasn't been preserved and can't be examined. In that case they can't tell technically whether the removed prostate includes the thin boundary layer all the way round, which means there is a bit where they can't tell whether there is a risk of prostate tissue left behind or not.