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In this video tutorial, Femi from the "Family How" channel explains two methods to insert a circle around any character. The first method involves using the 'Insert' button, selecting 'Symbols,' and then clicking 'More Symbols.' Users should search for 'Enclosed Alphanumerics' to find various characters surrounded by circles. After locating the desired character, clicking 'Insert' will add it to the document. The tutorial shows several examples of characters enclosed by circles. Femi emphasizes that users can also create circles around characters manually.