With my Nexus 4, Android 4.3 (Jelly Bean) it gives you 3-4 optional words when you start typing on the keyboard. So you go an choose the correct option.  

So if you start typing and type, lets say, first two letters FR.. It will give you FRIENDS, FRENCH, FRIES..  
You can then choose the correct word...

These things are funny.  But some of these words are getting auto-corrected because the iPhone has "helpfully" added them to its white-list of "acceptable" words based on the user's habits thus far.

Anyone who gets a typographical ("textographical?) error auto-corrected to "dildo" has used that word "legitimately" fairly often and fairly recently.

Not saying that people who use colorful language in texts are "asking for it"--just saying "be careful out there"

Actually, autocorrect mistakes say at least a little about the texter.  iPhones learn the words you use.