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Formatting a text means making changes to the TYPE of the text. For example, making it Bold,Italic,Underlined, Font size, Font color etc. It has more to do with the way it LOOKS.
Editing a text has more to do with the content. Like for example, making changes to a word, or a sentence that changes the entire meaning itself.
Editing a text goes beyond just grammar, punctuation and spelling. The words in a sentence must fit together to give you the precise idea of what the writer is saying, and must make sense within the context of the sentence. There should be no unnecessary words in a sentence. Sentences should flow to create a logical sequence in a paragraph, and then paragraphs will carry your sentences along the the purpose of the document--you don't start a meal with dessert and end up with the appetizer.
Formatting involves setting up a particular style for your document. It involves font, line spacing, paragraph alignment, and organization of your paragraphs and/or content on the page. A final formatted copy should be clean, logically laid out, and make it easy for the reader to find the content they are looking for, in specific cases, without having to read through the whole document.