Final answer:
Phonics is the reading skill that allows students to work with the smallest units of sound, which supports their ability to read and spell words.
Step-by-step explanation:
The basic reading skill in which students can manipulate the smallest units of sound is Phonics. Phonics involves understanding the relationship between sounds (phonemes) and their spellings (graphemes). This includes being able to break down words into their individual sounds, blend sounds together to form words, recognize patterns in spelling, and decode unfamiliar words. Mastering phonics is crucial for students to develop proficient reading and spelling skills.