Google Sites - Adding an Image from Google Drive

While it would be nice if Google simplified the image options (like they have in Documents), if your image is stored in Google Drive you go about inserting it a bit differently. 

1. Click on Insert and go to Drive

2.   Select the Image option here. 

3. This will let you search and select the image from your Drive. 
That's it!  Just not intuitive when you have an Image option right under the Insert, but it does show how easy it is to integrate something that is already stored in your Google Drive.

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