This was a truly esoteric question in the NSC P1 Prelim 2020. I was not aware of this setting: I have never seen this before and have also never felt the need to do something like this either!
In an Excel worksheet:
- Select a Cell or Range
- Activate the Home ribbon
- Open the Format Cells dialogue window
- Select the Alignment tab
- Select the Shrink to fit option checkbox in the Text control group
I seriously cannot think of a scenario in which I think this is appropriate formatting. You are far more likely to use Wrap Text to fit more text into a cell and still maintain legibility (the Shrink to fit option is not available when a cell already has Wrap Text applied).