The correct spelling of the phrase "tells thing two" involves the use of two homophones: "tells" and "tails." The initial sound in "tells" is represented by the phoneme /tɛl/, while the initial sound in "tails" is represented by the phoneme /teɪl/. The confusion arises from the fact that these two sounds are very similar in pronunciation. Therefore, when writing the phrase "tells thing two," it is important to carefully distinguish between these two sounds in order to avoid any ambiguity or confusion.