Answer: Most words contain several letter-sound combinations.
Explanation:
If a student writes "I Y m H s a I m" and thinks that each of those letters represents each of the words from the sentence, it´s clear that he hasn´t yet understood that words contain several letter-sound combinations.
Instead of the full words, the student is only taking one vowel or consonant to represent each or several words.
He does understand the use of letters in printing material. It doesn´t mean that he doesn´t understand that letters represent sounds, as he is connecting letters to sounds, although incorrectly. And he does use uppercase and lowercase letters, although still incorrectly.