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In this Excel tutorial, the presenter explains how to use the Replace function effectively. The function allows users to replace part of an existing text string with a new text string. The tutorial begins with an overview of the function's parameters and emphasizes the importance of practical application for learning. To demonstrate, the presenter starts applying the Replace function in cell B2, explaining that the first parameter required is the old text, which serves as the reference for what will be replaced. The goal is to provide a clear understanding of how to implement the Replace function in various scenarios.