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In this tutorial, Chip Wood demonstrates how to redact or highlight a PDF using Preview. Start by opening the PDF with Preview, either by ctrl-clicking or double-clicking. Access the markup toolbar to find options for fonts, fill colors, borders, and line thickness. To create a highlight box, select the square shape, adjust its border and thickness, and then position it around the desired text. Double-click the box to modify its fill color. To redact information, change the fill to black or use white to create a blank space for less visibility. Additionally, images can be redacted easily by clicking and dragging.