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In this video, the presenter demonstrates how to remove highlights and background colors from pasted text in Microsoft Word using three different methods. The first method involves highlighting the text and pressing control and space on the keyboard to remove the highlight. This method is applicable in Microsoft Word 2010, 2013, and 2016. The second method involves going to the home tab, clicking on the paragraph section, and selecting no color from the paint pan. The third method is not provided in the summary.