The term 'PAN PAL' is composed of four words, each with a different number of letters. The first word is 'POT' with three letters, the second is 'SATYR' with five letters, the third is 'TINKERBELL' with ten letters, and the last is 'WENDYDARLING' with twelve letters. Together, these words form a phrase that can be used to describe someone who is a friend of Peter PAN, the main character in J.M. Barrie's novel Peter and Wendy.