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In this tutorial, Clay Preston teaches viewers about shading and highlighting in Microsoft Word. He demonstrates how to select a color from the design options, opting for yellow. For shading, he explains that using the bucket tool colors the entire line. To highlight specific words without affecting the entire line, he suggests using the paintbrush tool to select and apply a chosen color, like yellow, only to the selected text. He concludes by encouraging viewers to like and subscribe if they found the video helpful.