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In this tutorial, the speaker demonstrates how to annotate using Google Sheets or Google Docs by ensuring that the suggesting mode is enabled. They suggest defining unknown words by making them bold and providing definitions in the margins, underlining interesting points, adding question marks for unclear areas, and using exclamation points for noteworthy information. To make connections, they recommend changing font or color and writing in the margins. The example provided focuses on annotating "public" and "scholarly" in the text.