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In this Excel tutorial, the presenter explains how to use the REPLACE function. The session begins with an introduction to the function and its parameters, emphasizing the importance of practical application for effective learning. The REPLACE function allows users to replace a segment of a text string with a different text string. To use it, you start by typing "=REPLACE" and specifying the old text you wish to modify. The tutorial progresses to demonstrate how to implement this function in cell B2, detailing how each parameter works and guiding viewers through the process of replacing text accurately.