The Edit Distance Problem (Levenshtein) calculates the minimum number of edits needed to change one string into another. We use a two-dimensional table where each cell dp[i][j] represents the minimum edits to convert the first i characters of the first string to the first j characters of the second string. We start by initializing the first row and column because converting from or to an empty string requires insertions or deletions equal to the length of the other string. Then, for each cell, we compare the characters of the two strings. If they match, we copy the diagonal value. If not, we take the minimum of the three possible operations (insert, delete, replace) plus one. After filling the table, the bottom-right cell gives the final minimum edit distance. This method ensures we consider all possible ways to transform one string into another efficiently.