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What is the term for the process by which unspecialized cells transform into more specialized cells?

A Differentiation

The process by which a less specialized cell develops into a more specialized form is known as cellular differentiation. This process is vital to the growth and development of humans and other complex multicellular organisms. A human embryo starts as a single undifferentiated cell. It then divides and differentiates into the roughly two hundred different kinds of cells in the adult human body.