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In this episode of Practical Bash and Terminal Skills, the focus is on the 'TR' command, which can be used to replace, delete, and trim characters from strings. Despite initial misconceptions, 'TR' actually stands for translate characters. The command takes two arguments, representing the characters you want to replace and what you want to replace them with. This can be useful for tasks like altering text and removing whitespace. Through examples, the tutorial demonstrates how to use 'TR' to manipulate strings effectively.