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To transform .Rmd to .md format using R studio, follow these steps:

1. Open your .Rmd file in R studio.
2. Click on the "Knit" button located at the top of the source pane.
3. In the drop-down menu, select "Knit to Markdown".
4. R studio will process the .Rmd file and create a new .md file in the same directory as the original .Rmd file.
5. The newly created .md file can be found in the "Files" pane in R studio.