What happens to sugar when it is dissolved in water?

What happens to sugar when it is dissolved in water? Where does the sugar go? What information do you get about the nature of matter from the dissolution of sugar in water?

When sugar is dissolved in water, its crystals break-off to give tiny particles. The sugar particles go into the spaces between the particles of water and mix with them to form sugar solution.
From the dissolution of sugar in water, we infer that

  1. the matter consisting of sugar and water is made up of small particles.
  2. the particles of matter (water) have spaces between them.