The spelling of the word "Gracy" can be confusing due to its unusual phonetic structure. The correct IPA phonetic transcription for this word is /ˈɡreɪsɪ/. This means that the first syllable is pronounced with a long "a" sound, followed by a consonant cluster of "c" and "y" that is pronounced as "s". The final syllable is pronounced with a short "i" sound. Though the spelling may appear unconventional, this transcription accurately represents the pronunciation of the word "Gracy".