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Default Can a cell be *either text or the result of a formula?

Can a formula print a result in a target cell, one that doesn't have a
formula itself because it also may be used for text entry?
I want users to be able to type text into cells in the B column. The
exception is, when there is a Y in an A-column cell, I want B1's content (in
this case, "RED") to be copied into target cell B3. The Y is the controlling
factor -- if it's there, B3 says RED; if the Y is not there, the user can
enter own text.
Is this dual-nature B3 possible? It seems like the answer may be an
IF in another cell that prints a result into B3. Like in the movie `Broadcast
News,' I `say it here and it comes out there.'
A B
1 RED
2
3 Y

 
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