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The tutorial discusses paragraph rules and shading, explaining that they apply only at the paragraph level and cannot be used on selected text within a paragraph. To create a highlight effect, a character-level approach is necessary. The presenter demonstrates how to highlight specific words (like "ham," "turkey," and "pastrami") by selecting them and ensuring spaces are included. Using the character panel, the user selects underline options, enabling a dialog box. After ensuring previews are active, the underline feature is activated, allowing for color changes and adjustments to line weight, achieving a highlighted look with a magenta underline.
