I would structure the sentence as a data table in a workflow, like:
Column 1 = "Mark has a ", Column 2 = "red", Column 3 = "Ferrari"
Then in the report I would apply the highlights property to color the font for example with the condition if <word> equals to "red" then color = red
As far as I know, you need to isolate the word to be colored, because the highlights applies to the whole data cell.
2. via Text report item.
Alternatively you can use the item Text, with HTML formatting and pass the whole text as html. In this case, you might use the dynamic text to import the text from a data set and <B> .... </B> or <FONT size="" color="RED" face=""> .... </FONT> to enhance the color words.