The statement is mostly correct. An increase in thermal energy typically results in an increase in kinetic energy of the particles in a substance. As the thermal energy increases, the particles move more rapidly, which corresponds to an increase in temperature (or heat) of the substance until a phase change occurs.
However, during a phase change (e.g., melting, boiling), while the thermal energy continues to be added, the kinetic energy of the particles does not increase in the same way; instead, that energy goes into overcoming intermolecular forces instead of increasing the temperature.
So, while the answer you provided is correct up to a point, it is important to clarify that during the phase change, increased thermal energy does not lead to an increase in kinetic energy.
If you're looking for a succinct answer: An increase in thermal energy leads to an increase in kinetic energy until a phase change occurs, affecting temperature but not kinetic energy during the phase change itself.