In his sentence he said, "It's god damn pigeon." To break it down further, let me clarify here that "it" refers to "the word 'pidgeon' on the original image." By "is," natanhiel clearly meant "is supposed to be spelled." Realizing these two facts, the sentence, "It's god damn pigeon," or, when broken down, "It is god damn pigeon," could also have been written or interpreted as, "The word 'pidgeon' in the original image is supposed to be spelled god damn pigeon." The structure was sound. The spelling was sound. Your interpretation was off.

If you still find yourself confused, I cannot help any further.