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In this segment, the focus shifts from text to paragraphs in Word 2021, emphasizing the various formatting options available for entire paragraphs. A paragraph is defined as any text where the user has pressed the enter key. The speaker mentions that the current document, copied from Wikipedia, may require re-evaluation of paragraph placement. For example, the user can insert a new paragraph after a specific word by positioning the cursor and pressing enter. It’s noted that even the title of the document is considered a paragraph, which is typically not standard practice in general formatting. The tutorial aims to clarify these formatting capabilities within the Word application.