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In this video tutorial, the presenter demonstrates how to create a linked table of contents in Microsoft Word. By using this feature, users can easily navigate through different sections of their document. The purpose of creating a linked table of contents is to update a book for Smashwords, a platform that requires these navigations. The process is not difficult, and the presenter provides helpful tips to speed it up. The first step is to navigate to a specific section in the document using the find function. Then, users can link the heading to the table of contents using the top ribbon in Word.