easiest way is to do it with regular expressions, assuming that you want to iterate over each line in the file (where 'A' would be stored) you do...
import re
input = file('C:\full_path\Stud.txt), 'r')
#when you try and write to a file with write permissions, it clears the file and writes only #what you tell it to the file. So we have to save the file first.
saved_input
for eachLine in input:
saved_input.append(eachLine)
#now we change entries with 'A' to 'Orange'
for i in range(0, len(old):
search = re.sub('A', 'Orange', saved_input[i])
if search is not None:
saved_input[i] = search
#now we open the file in write mode (clearing it) and writing saved_input back to it
input = file('C:\full_path\Stud.txt), 'w')
for each in saved_input:
input.write(each)