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In this video tutorial, the presenter demonstrates how to change the text highlight color and font color in Microsoft Word. To increase the font size, users can press "Ctrl" and the right curly bracket, or adjust it through the Home tab. The video refers to options for text effects and typography discussed in a previous video. To change text highlight color, the user must select the desired text and choose the highlight color from the provided options. Similarly, to change the font color, the text should again be selected before choosing the new color.