Castles

Alphablocks H and M are building sandcastles with a HAT and a MUG. Alphablock I thinks it's a competition and decides to be the judge. H puts a TOP on her castle, and M makes his grow UP. H uses a DOT to decorate her castle, and M gets help from the PEN to decorate his. Alphablock I tries to tell them who will win and is surprised when a trophy falls into her hands. How can she be the winner?