The term 'IT HAS A HEAD AND HOPS' can be solved by three different words: ALE (3 letters), LAGER (5 letters), and BEER (4 letters). ALE is a type of BEER that is brewed using warm fermentation, which produces a sweet, full-bodied flavor. LAGER is a type of BEER that is brewed using cold fermentation, which produces a crisp, clean taste. BEER is an alcoholic beverage made from fermented grains, such as barley, wheat, and hops. All three of these beverages have a head, or foam, on top when poured, and are brewed with hops, which give them their distinct flavor.