Yes it can. To do so go to "Accessories" in the Start Menu and select "Command Prompt". You'll see a DOS-like box open to a command prompt. At the prompt, type the following command and hit enter:

Convert c: /FS:NTFS

The conversion won't start until you restart Windows. At that point, you'll see a strange screen on next startup. It will convert the file system and then reboot. Then you're done.