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In this video, Sarika from "Your Knowledge Buddy" explains how to create a personalized cover letter to accompany a job application. A cover letter serves as an introduction and details how past experiences relate to the specific job, distinguishing it from a CV, which outlines past roles. Sarika also demonstrates using Europass to easily create a CV. She emphasizes that the content is crucial, while the template is less important. The cover letter should be one page and include essential details such as your full name, email address, and phone number. The middle paragraph is highlighted as a key section of the cover letter.