Now your case contains two steps:
1. Removing additional spaces and converting them to single space. You can use REPLACE() method to this.
SELECT REPLACE(REPLACE(REPLACE("This is a string",' ','<>'),'><',''),'<>',' ')
Process:
The innermost REPLACE changes all blanks to a less-than greater-than pair.
If there are three spaces between This and is, the innermost REPLACE returns This<><><>is.
The middle REPLACE changes all greater-than less-than pairs to the empty string, which removes them.
The<><><>is becomes The<>is.
The outer REPLACE changes all less-than greater-than pairs to a single blank. The<>is becomes
The is.
Now all the sentences are normalized with one space.
2. Split the words and get the three words.
There are lot of Stackoverflow question which discusses them. I liked the Common Table Expression to split the string : How do I split a string so I can access item x?
Let me know if you require any help in the splitting the words.