The wavy blue (or green) underline in Word is used to indicate a grammatical error (as compared to the red underline for a misspelling). The computer program may or may not be right; it's worth looking at it, but sometimes you actually do want to phrase yourself the way you did, despite the objection of the Word program.
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The red wavy line underlining a word means that is is misspelled. If you right click on the word, the program will offer suggested correct spellings that it thinks you meant - if you click on one, Word will replace it for you.
If you get a green squiggly instead, this is a grammar error. Right clicking will not allow you to correct the error automatically, but it will still offer help in what needs to be changed.
Spelling is incorrect You can left-click on the word, and it will give you the correct spelling option(s).