RAW is a lossless file format (meaning there is no compression such as in JPEG which slightly reduces overall image quality) allowing you to edit your images in post production to get the image you want.
You select RAW in the picture quality menu in the settings in camera.
You'll need some editing software (like Photoshop) in order to process RAW images. Once open in an editing program, you can adjust the exposure and white balance, amongst other things to get the right balance for your images.
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