I used these files as input
Address.xlsx XML.xml
#include <Excel.au3>
Global $sXLSPath = @ScriptDir & '\Address.xlsx'
Global $sXMLPath = @ScriptDir & '\XML.xml'
Global $sXML = FileRead($sXMLPath)
$oExcel = _Excel_Open(False)
$oWorkBook = _Excel_BookOpen($oExcel, $sXLSPath, True, False)
$aData = _Excel_RangeRead($oWorkBook, Default, 'A1:C4')
_Excel_BookClose($oWorkBook, False)
_Excel_Close($oExcel, False)
If IsArray($aData) Then
For $Index = 0 To UBound($aData) - 1
$sRegex = '<Item>(\s*)<ID>(.*?)' & $aData[$Index][0] & '\-' & $aData[$Index][1] & '<\/ID>(\s*)<Label>(.*?)<\/Label>(\s*)<\/Item>'
$sReplace = '<Item>${1}<ID>${2}' & $aData[$Index][0] & '-' & $aData[$Index][1] & '</ID>${3}<Label>' & $aData[$Index][2] & '</Label>${5}</Item>'
$sXML = StringRegExpReplace($sXML, $sRegex, $sReplace)
Next
EndIf
FileWrite(@ScriptDir & '\Output.xml', $sXML)
Output: