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Open Drive
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Right-click the file you want to convert.
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Select Open with..., and then choose an app. Depending on what type of file you're trying to open, Docs, Sheets, or Slides will be listed there.
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Your File will open in the selected Google App
When I open Google Drive, I now see two versions of the document. Is this normal?
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Yes. Your Drive now contains the original Word Document and the Google Docs Version.
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You have the option to keep them both or delete the original.