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In this PowerShell tutorial, the instructor demonstrates how to use the `Replace` method and operator for modifying strings. Using PowerShell 7, a basic string "hello, world" is assigned to a variable. The simplest example is shown by replacing "hello" with "hi" using the syntax: `string.replace("hello", "hi")`, resulting in "hi, world". The tutorial highlights that it's unnecessary to store the string in a variable; you can directly call the `Replace` method on the string itself. The final example executes the same operation without a variable, confirming the method’s flexibility. The approach is applicable in both PowerShell 7 and Windows PowerShell.