iPhone OS 4.0 Beta 3 Brings New Spelling Features

iPhone OS 4.0 Beta 3 offers new spelling features similar to those available on the iPad.

According to AppleInsider, developers are reporting new spellcheck and suggested word replacement features.

You can now
touch a misspelled word to select it, and then touch "Replace…" as an alternative to cut or copy operations. The system then offers replacement word suggestions in blue type, allowing for one touch correction. Misspelled text is underlined in red, a convention from Mac OS X's system wide spell check that was originally taken from Microsoft Word.

You can see the new features in the screenshot below...

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