With find you can search the document for a certain word or character string. With replace you can replace all instances of a word or character string by a different one. That can save you a lot of time.
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Where it says "Find", type in the word you want to be replaced. Where it says "Replace With", type in the word that you want to replace it with. When you hit "OK", it will go through and replaces the "Find" word with the "Replace With" word. For example, you could replace all instances of the word "him" with "her" with this feature, instead of going through yourself and manually retyping it.
You will tell the computer to find the term "whatever you tell it" and it will replace it with "whatever term you tell it"
For example, "I don't like Legos"
Search for "don't"
Replace with "do"
Now it says "I do like Legos"