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Caroline Patton demonstrates how to do peer editing and review in Microsoft Word to track changes made as a proofreader or teacher, reducing printing costs by emailing documents back and forth instead of printing multiple copies. This method is beneficial for students who don't have access to a printer. Patton emphasizes the environmental impact of using paper unnecessarily and promotes efficient peer editing practices. To start the proofreading format, there are two ways to access it in Microsoft Word.