That statement is almost correct, but it needs a slight tweak. Here's the breakdown:

* Atoms are the smallest unit of an element that retains the chemical properties of that element.

* Molecules are the smallest unit of a compound that retains the chemical properties of that compound.

Here's why:

* Elements are made up of only one type of atom. For example, gold is an element, and it's made entirely of gold atoms.

* Compounds are formed when two or more different elements combine chemically. For example, water is a compound made of hydrogen and oxygen atoms bonded together.

So, the corrected statement would be:

* Molecules are the smallest particles of a compound that still retain the properties of the compound.