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Sentence Correction: Pronoun Questions - The word/term

The word honey is a sweet fluid produced by bees.

The above sentence is __________.

The sentence is grammatically correct. The subject and verb agree in number - they're both singular, the use of present tense is done correctly, etc. If you copy this sentence to a word processor, the grammar checker would accept it as correct.

Very good!

Honey - not the word honey - is a sweet fluid produced by bees. The word honey is not sweet - words have no taste.

The correct answer is, therefore, that the sentence is illogical.

The sentence is not redundant. There is no repetition in it, and no obvious way of expressing the same meaning in fewer words.

Since the sentence does not have an unclear or double meaning, it is not ambiguous.

Actually, it is incorrect. 

Grammatically incorrect
Illogical
Stylistically incorrect - redundant
Stylistically incorrect - ambiguous
Correct