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This video tutorial explains how to annotate a Microsoft Word document, which involves marking the text through highlighting, circling, numbering, or making notes. The first method is to circle specific sections by using annotation tools from the draw tab, where you can customize using a pen, marker, or pencil. The second method involves boxing a section by highlighting the word and selecting outside borders. The third method is to highlight text by selecting the highlight option from the home menu. These methods allow you to annotate effectively in a Word document.