* Dissolving: The sugar molecules break apart from each other and become surrounded by water molecules. This process is called solvation.
* Solution: The resulting mixture of sugar and water is called a solution, where sugar is the solute (the substance that dissolves) and water is the solvent (the substance that does the dissolving).
The sugar molecules don't disappear, they just become evenly distributed throughout the water, making the solution sweet. This is why we can't see the individual sugar molecules in the water.