He understands the importance of education.
Meaning: He has knowledge or comprehension of the significance of the process of acquiring knowledge, skills, values, beliefs, and habits.
Choice of Words: Understands means to have knowledge or comprehension of something. Importance is the quality of being important or significant. Education is the process of acquiring knowledge, skills, values, beliefs, and habits. When you put them together, "He understands the importance of education" means that he has knowledge or comprehension of the significance of the process of acquiring knowledge, skills, values, beliefs, and habits.
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