Teaching with Moodle

To your question:
> the student is given a sentence with mistakes and they need to correct it by editing the text (using arrows, delete, backspace, capital letters etc.)
>
>Like in this sentence:
>
> 'Iam atHome.'
>
> I don't want students to just retype the sentence

So the student is expected to to the following:
1. Click on the text field to the left of 'I'
2. Left arrow
3. Space
4. 5x Left arror
5. Space
6. Del
7. 'h'

Not that it is impossible, but all the question type I know check for the final answer - not the sequence of key strokes.

Even if there is one, how about this answer:
1. Click on the text field to the right of 'I'
2. Space
3. Click between 't' and 'H'
4. Space
5. Click after 'H'

6. Backspace

7. 'h'

Is it also correct?

I would use Multiple-Choice questions for this, building upon what Visvanath said above with his two 7-step methods.

You can have 4 MC answers, with only one choice providing the correct steps. A good student would probably try each answer, so you would be causing them to determine the correct keystrokes.

Like so:

Even if there is one, how about this answer:
1. Click on the text field to the right of 'I'
2. Space
3. Click between 't' and 'H'
4. Space
5. Click after 'H'
6. Backspace
7. 'h'

Even if there is one, how about this answer:
1. Click on the text field to the left of 'I'
2. Space
3. Click between 't' and 'H'
4. Space
5. Click after 'H'
6. Backspace
7. 'h'

Even if there is one, how about this answer:
1. Click on the text field to the right of 'I'
2. Space
3. Click between 't' and 'H'
4. Backspace
5. Click after 'H'
6. Space
7. 'h'

Even if there is one, how about this answer:
1. Click on the text field to the right of 'I'
2. Backspace
3. Click between 't' and 'H'
4. Click Up Arrow
5. Click after 'H'
6. Backspace
7. 'h'