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In this Excel tutorial, the instructor demonstrates how to create a simple cell reference within the same worksheet and across different worksheets. To reference cell A1 in C1, the user types an equal sign (=) followed by A1, which displays the content of A1 in C1. For referencing cells across worksheets, the process involves typing an equal sign, the worksheet name (e.g., Sheet2), an exclamation mark, and the cell reference (e.g., A1). For example, if A1 in Sheet2 contains "Welcome," referencing it from Sheet1 will display "Welcome." Any changes made to Sheet2's A1 will be reflected in Sheet1, demonstrating the dynamic nature of cell references in Excel.