A computer processes the phrase "hello world" primarily as a string of 1’s and 0’s. This represents the binary encoding that the computer uses to store and manipulate data. Additionally, the characters can also be represented as ASCII text, which encodes each character into a specific numerical value, and then that value is ultimately represented in binary (1's and 0's) for processing.
While the other options have some validity in different contexts (for example, it can be represented as a series of 16-bit characters if using Unicode), the most fundamental way a computer processes text is as a binary representation of those characters. Therefore, the best option for this question is:
as a string of 1’s and 0’s.
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