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Select a file. Then, give the image a title, and descriptive alternative text. Then, choochoose "This file displays inline..." and click save.
The image will be added to the page.
Students will have to click on the item to see any of the content. If you do want to have some text showing to the students before they click on it, you'll need to edit the description. To do so, click the gear.
Add a description and click Save.
Finally, you'll need to make the item available to students by changing it from "Hidden from students" to "Visible to students."
Finally, click Save.