There is no conversion of .jpg to .doc at this time. However, if you wish to insert the picture, remember what folder you saved the picture to and what you named it, then insert it.
If you want the picture as a background to the word document, you'll have to go to Format + Background + Fill Effects. Go to Picture. Select picture.
If you wish to edit the picture, unless you have some professional-grade software, or don't mind doing a sloppy job on MS Paint, I do not believe it can be done.
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