State the way different graduates do it? (7)

I believe the answer is:

alabama

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'state' is the definition.
(I know that Alabama is a state)

I don't understand how the remainder of the clue works.

(Other definitions for alabama that I've seen before include "Source of cotton" , "State of SE USA" , "Birmingham area" , "US state known as the Heart of Dixie" , "US state in which Birmingham is situated" .)

I've seen this clue in The Times.

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