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To create a graph that displays x and y coordinates in separate columns while utilizing the third column as a legend, follow these steps:

1. Enter your data in three columns in a spreadsheet program like Microsoft Excel or Google Sheets. For example, column A would contain the x-axis data, column B would contain the y-axis data, and column C would contain the legend data.
2. Highlight all three columns of data by clicking and dragging your mouse over them.
3. Click on the "Insert" tab in the top toolbar.
4. Select the desired chart type, such as "scatter plot," from the "Charts" section in the toolbar.
5. Once the chart is created, customize it by adding chart title, axis labels, and legend title. You can do this by clicking on the chart and then selecting the "Chart elements," "Axes," and "Legend" options from the "Chart Design" tab in the toolbar.
6. Click and drag the legend to a position that works well for your chart.

Your graph should now display x and y coordinates in separate columns while utilizing the third column as a legend.