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In this video, Clay Preston teaches viewers about shading and highlighting in Microsoft Word. He demonstrates how to select a color using the design option, opting for yellow. To shade, he explains that choosing a color fills the entire line of text. In contrast, to highlight, viewers can select a word, click on the paintbrush icon, and choose a color—this action only highlights the selected word without affecting the entire line. Preston encourages viewers to experiment with different colors and invites them to like and subscribe if they found the tutorial helpful.