The spelling of the phrase "am the edge" can be explained through phonetic transcription. The vowel sound in "am" is pronounced as /æm/, which is followed by the consonant sound /ð/ in "the." The final word, "edge," is spelled with the /ɛdʒ/ sound, which is a combination of the vowel /ɛ/ and the consonant /dʒ/. Thus, the correct spelling of "am the edge" can be broken down into its individual phonemes as /æm ði ɛdʒ/. It is important to understand phonetic transcription as it helps to accurately represent spoken language.