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The tutorial covers six types of password protection in Microsoft Excel. It explains how to set a password for opening a file as well as for modifying it. Additionally, it introduces workbook and worksheet protection. To set a password for opening an Excel file, the user should save the file as a new document, then navigate to the "Tools" menu. From there, selecting "General Options" allows the user to set passwords for both file access and modifications. The video proceeds to demonstrate these steps using a blank Excel file.