The term that refers to the arrangement of words isMultiple Choicegrammar.code.encoding.syntax.

The correct term that refers to the arrangement of words is syntax.

Explanation:

1. Grammar refers to the set of rules that governs how sentences are structured and understood in a language, but it encompasses more than just word arrangement.
2. Code generally refers to a system of rules for communication in programming or representing data, not specifically about word arrangement.
3. Encoding pertains to the process of converting information into a particular format for efficient transmission or storage, and does not directly refer to word arrangement either.
4. Syntax specifically deals with how words are combined to form phrases, clauses, and sentences, making it the best fit for the question regarding the arrangement of words.

In summary, the relevant choice that best describes the arrangement of words in a sentence is syntax.