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In this tutorial, Sally from eLearning demonstrates how to create a student annotation assignment. First, you need to create a new assignment, provide a name and instructions, and set the submission type to "online" in the assignment settings. Under "online entry options," check "student annotation." Next, upload the file for students to annotate either from your computer or from the course. After uploading, click "save and publish" to make the assignment available. When students access the assignment, they can mark up the uploaded document. Sally also shows how this looks from the student’s perspective, where they click "start assignment" to access the document.