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In this tutorial, the presenter explains how to use the Replace function in Microsoft Excel. The video outlines the importance of understanding the function's parameters and applying them correctly. The Replace function specifically allows users to replace a portion of a text string with a different string. The tutorial begins with the application of the function in cell B2, where the presenter guides viewers on how to input the function. Initially, users are prompted to enter the first parameter, which is the old text that needs to be replaced. The clear step-by-step approach aims to enhance the viewer's understanding and practical application of the Replace function.