Learning "Smells Like Teen Spirit" allows guitarists to practice three separate techniques - playing basic power chords, playing strumming patterns using muted strings, and the technique of turning on a distortion pedal in mid-song.
The chords for "Smells Like Teen Spirit" are easy - once you've conquered power chords, you're set. Where you'll need to focus is on the strumming. Use your fretting hand to deaden the strings, by lightly laying it flat across the fretboard, making sure it is touching all six strings. Strum up and down while doing this - notice that it can provide a very percussive sound. You'll need to then practice forming the barre chord, playing it, then immediately deadening the strings using the technique described here. Listen to the song for specific cues on how this should sound.
To move effectively from the distortion-free sound of the verse, to the heavily distorted guitar sound in the chorus, you'll need a distortion unit you can operate with your foot. Make sure your unit is set to boost the overall volume of your guitar with the pedal engaged.