dissolved might work, but a better answer would be "soluable" since that means able to be dissolved. If you're interested in why it can, it's because the slightly negative and positive parts of water (the oxygen is slightly negative, the hydrogens are positive) have a weak attraction for the OH groups sticking off of sugar, so if you put sugar into a beaker of water, the water molecules will gather around the sugar molecules and help them float off and away from the other sugar molecules, spreading out everywhere in the water. The sugar is still there (as you can tell when you taste some of the water), just spread out. If you let the water evaporate, slowly you'll start to see the sugar reappear as you stop having enough water molecules to keep them spread out.