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In this video tutorial, Rhiannon from the Contract Express team demonstrates how to create text selection variables. Begin by clicking the plus icon and selecting "new variable," then name your variable and formulate a question for the user. Change the variable type to "text selection," which offers presentation options like single and multi-select. To define your selection options, navigate to the constraints tab and list each option on separate lines. You can also enable an "other" option, allowing users to input a custom choice not predefined. Once the variable is created, insert it into the document by right-clicking and selecting "insert to document."