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In this tutorial, Jamin from Import Data explains how to replace string values in text files and data frames using Python's replace function. This technique is particularly useful for data cleaning and manipulation. He emphasizes the simplicity of the process by providing a straightforward example: for instance, changing the phrase "import data" to a capitalized version within the sentence "welcome to import data youtube channel." The replace function requires two arguments: the string to find and the string to replace it with. Jamin encourages viewers to like the video if they find it helpful and to subscribe for more content.