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Chip Wood demonstrates how to redact or highlight a PDF using the Preview app. To start, open your PDF by ctrl-clicking it and selecting Preview, or double-click if it's your default viewer. Access the Markup toolbar to choose fonts, fill colors, borders, and line thickness. For redaction, select the square shape, adjust the border, and fit it around the text. Highlighting is done by clicking outside the box. For redaction, double-click the box to change the fill color to black and remove the border. Alternatively, for a less obvious redaction, change the fill color to white. Additionally, redacting an image can be done easily by clicking and dragging over the area.