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In this Excel 10 tutorial, the instructor explains how to use the Replace function in Microsoft Excel. The video covers the function's parameters and demonstrates its application for replacing part of a text string with a different string. The tutorial starts by showing how to implement the function in cell B2, specifically emphasizing the importance of understanding each parameter. The Replace function replaces an "old" text with "new" text, and the first parameter required is the existing text that will be modified. The instructor encourages viewers to apply the function as a means of learning.