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Try CloudOn app for iPad
CloudOn provides a cloud-based office suite that includes Word, Excel and Powerpoint with full document compatibility that can save files on Dropbox, Google Drive etc for universal access. Tha apps are slightly cut-down but still do things like "track changes", and all the formatting options you need - even format painting and it costs a whole lot of nothing! It currently lacks offline capability but there's a strong user push for it and these guys seem to listen!