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In this video, the presenter explains two methods to remove a watermark in Microsoft Word. The first method involves going to the Design tab, finding the Page Background group, and selecting "Remove Watermark," which typically removes the watermark from all pages. However, if this method fails, the second, more general approach is recommended. To use this method, the user should double-click on the header area of the document to access header options, enabling the removal of any persistent watermark. This covers the key steps for both methods to successfully eliminate a watermark in Word.