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In this video tutorial, the presenter explains how to use the Replace function in Microsoft Excel. Starting with an introduction, the tutorial emphasizes the importance of applying the function to understand its parameters effectively. The Replace function, as described, allows users to replace part of a text string with a different text string. The presenter demonstrates the function by applying it in cell B2, showing that the first parameter required is the "old text," which is the existing text that will be modified. The tutorial aims to provide a clear understanding of how to implement the Replace function in various scenarios.