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The tutorial explains how to use Microsoft Word's Track Changes and Comments features for document proofreading. Instead of using a red pen, changes are marked electronically: deletions are crossed out, and additions are underlined, allowing the document owner to review modifications before finalizing the draft. To activate Track Changes, navigate to the Review tab and select the Track Changes command. Additionally, users can add comments by selecting text and clicking the New Comment command. This method enhances the proofreading process by clearly indicating suggested revisions and comments directly on the document.