Wrap text does not adjust row height in Excel 2007

To understand this post, open a new workbook and enter a long text in cell B2, say This is a long sentence to understand the post Wrap text does not adjust row height in Excel 2007.
Now enter some text in cell C2, say 123. You will see that the text in the cell B2 gets truncated. To see all the text that you typed, click cell B2 and click the Wrap Text command that is available in the Alignment group on the Home tab. You will see that the row height gets automatically adjusted to fit the text.

Now adjust the row height of row number 3 manually by dragging the bottom border of row header 3 to a height say 36.00 which is 48 pixels. After the row height is changed, click cell B3 and enter the text This is also a long sentence to understand the post Wrap text does not adjust row height in Excel 2007. Now you will see some text being truncated when some text is entered in cell C3. Click cell B3 and click the Wrap Text that is available in the Alignment group on the Home tab.
You will see that the row height has not changed, right. To adjust the row height, perform the following:
1. Click on the cell or the row header.
2. On the Home tab, in the Cells group click Format, and click Autofit Row Height.