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In this tutorial, Jamin from Import Data demonstrates how to replace string values in text files or data frames using Python's replace function. He emphasizes the usefulness of this function for data cleaning and manipulation. Jamin provides a simple example where he shows how to capitalize "import data" in the sentence "welcome to import data youtube channel." He explains that the replace function takes two arguments: the first is the string to search for, and the second is the string to replace it with. He encourages viewers to like and subscribe for more useful videos.