A third-grade student, who has previously found reading very difficult, now reads their favorite storybooks aloud with impressive speed and accuracy. However, when asked to read a new science article with unfamiliar terms, the student becomes hesitant and frequently misreads or guesses words. Which statement provides the most accurate analysis of this situation?

A teacher observes a student who has difficulty processing the sounds within words. This student can read a familiar storybook very quickly but struggles significantly when asked to read a new passage with unfamiliar words. When faced with a new word, the student often guesses after looking at its first letter and general shape. Which compensatory strategy is this student most likely employing to read?