For example you want change log out to Log Out
when edit your widget_in.php (with Notepad) in line 45
<a id="wp-logout" href="<?php echo wp_logout_url() ?>"><?php echo strtolower(__( 'log Out' )) ?></a><br />
In this line you need change only one word: strtolower to ucfirst
It’s a php function, that’s returns a string with the first character capitalized
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