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The tutorial by Matthew Pearce, a software engineer, demonstrates how to create drop-down lists in Excel with multiple options. He discusses two methods: one for creating a drop-down list with options on the same page and another for options from a list on a different page. Using an example of ice cream scoop sizes and flavors, he shows how to set up data validation for the drop-down lists. By selecting the cell, going to data validation, and making necessary settings, the drop-down list can be easily created in Excel.