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In this tutorial, the presenter explains how to use the Replace function in Microsoft Excel. The video emphasizes the importance of understanding the function through practical application. The presenter demonstrates the Replace function by applying it in cell B2 and detailing its parameters. The Replace function is designed to replace part of a text string with a different string. The first parameter required is the "old text," which refers to the existing text that will undergo replacement. Overall, the tutorial aims to teach viewers how to implement the Replace function effectively in their Excel tasks.