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In this video tutorial, the presenter demonstrates how to highlight text in a picture using Microsoft Word. The first method involves using the Snipping Tool, a built-in Windows 10 application. Users can create a new screenshot and use the highlighter feature to select and highlight the desired text, then copy the edited image back into Word. The second method involves inserting a shape by going to the "Insert" tab, selecting a rectangle, and placing it over the text to be highlighted. Users can then change the rectangle's color to yellow, remove the outline, and adjust the formatting as needed. Both methods effectively allow for highlighting text within images in Word documents.