The Variables tab is very similar to the screen you see when you select "Tools | Variables". On the left is a list of all the Variable names, which do not need to be translated and when you select each one the text that needs translating will be loaded into the main field in the middle. The original text will also be shown on the right, in order to compare the two while translating.
Translate all the text in the middle section and click the green translation status icon when completed.
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