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In this tutorial segment, the speaker explains the limitations of applying paragraph rules and shading in text formatting, emphasizing that these can only be applied at the paragraph level, not to selected text within a paragraph. To create a highlight effect, the speaker demonstrates a character-level method by selecting specific words—like "ham," "turkey," and "pastrami"—including spaces. They navigate to the control panel's character panel, select underline options, and adjust the settings to apply a colored underline (in this case, magenta) while increasing its weight for visibility. This technique allows for highlighting text effectively without using paragraph shading.
