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To highlight text in a video, first add a screenshot to the timeline. Use the pen tool to select the rectangle tool and drag a rectangle over the desired text. In the effect controls, access shape settings to change the fill color to your preferred highlight color, like yellow. Adjust the blend mode to multiply for effective highlighting. To animate the highlight, search for the crop effect and apply it to the graphic layer. Position the playhead at the start of the graphic in the effect controls and modify the crop effect settings as needed.