1. Continued phonemic awareness, letter knowledge, and book and print awareness.
2. Starts "real" reading.
3. Decoding, word recognition, oral reading.  Can decode reliably one-syllable regular words.  Can use alphabetic principal to identify unknown words.  Builds a sight word vocabulary.
4. Language, comprehension, response to text. Lots of oral, and reading, discussion, summarizing, locating main ideals, predicting, and relating to life and other reading.  Improving fluency and comprehension, using repeated readings.
5. Writing - correct spelling for one-syllable, short vowel words.  "Phonemic" spelling skill o.k. for more advanced words.  By end is using basic punctuation and sentence structure.

Some useful sites for parents to help children to learn sight words.