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In this Excel tutorial, the Replace function is explained, focusing on its application and parameters. The Replace function allows users to replace part of a text string with another text string. To use it, start by typing "REPLACE" in a cell, which prompts for parameters. The first parameter needed is the "old text," representing the existing text that will be modified. The tutorial emphasizes practical application to enhance understanding of how to effectively implement the Replace function in various scenarios, ensuring users can apply this knowledge as needed.