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The term "modify" refers to making slight changes to something. For instance, after completing her first draft of an essay, she modified it in the second draft. Additionally, someone might modify a bedroom to create more space for a guest or alter a recipe to make it more appealing for children. The video encourages viewers to use the word "modify" when they want to describe making these kinds of minor adjustments. It invites viewers to like and subscribe for more content on this topic.