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In this tutorial by Chip Wood, viewers learn how to redact or highlight text in a PDF using the Preview application. To start, users can open their PDF by Ctrl-clicking and selecting Preview, or by double-clicking if it's the default viewer. The markup toolbar provides tools for fonts, fill color, borders, and line thickness. Users can draw a rectangular shape to highlight or redact text by adjusting the box's size and border. For redaction, the fill color can be changed to black or white for less visibility. The tutorial also outlines how to easily redact images by clicking and dragging.