Everyone can read that. If you read it fast, you won't even realize the displacement of words. It's a theory that in most cases people don't even read the full phrase when they read fast; they only look at the beginning and the end of the phrase.
It's more of a psychology thing than anything else. Most of the time, our brain is trained to recognize the shapes of words rather than their spelling. That's why reading it through quickly the first time you might not even notice. Interesting picture, though. xP
This is more about how our minds pick up the patterns in words. Only the first and last letter need to be in place, anything in between can be a mess and our minds can form that word on its own. Pattern recognition.
This technically has nothing to do with being smart. Your brain automatically does it. Some people have a harder time. I, for example, edit a lot of papers. Because of this, I check each letter as I read. This takes me longer to read than it would most people.
It's more about pattern recognition really. Our minds don't look at every single letter to form a word, so long as the letters that form the word are grouped together most people will be able to read it. Regardless of their order.