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To create a Cell Reference in Excel, start with an equal sign (=) followed by the cell you want to reference. For referencing across different worksheets, use the syntax "=worksheet name!cell reference". For example, in Sheet2, A1 is "welcome", to show this in Sheet1, enter "=Sheet2!A1". Changing the content in A1 will automatically update on Sheet1. This method allows for easy referencing between different worksheets.