Translation:This sentence consists of seven words.
For everyone struggling with this verb: (from wiktionary) Verb
bestehen (irregular, third-person singular simple present besteht, past tense bestand, past participle bestanden, past subjunctive bestände or bestünde, auxiliary haben)<pre>
(transitive) to succeed, to pass (an exam) Er hat die Prüfung bestanden. He has passed the exam. (intransitive) to consist (aus (“of”)) [quotations ▼] (intranitive) to exist Durch geschicktes Management blieb die Firma auch im starken Wettbewerb bestehen. By smart management the company survived in the strong competition. (intransitive) to insist (auf (“on”)) Er besteht darauf, dass dem Druck nicht nachgegeben wird. He insists on not giving in to the pressure.</pre>
I suspect that this was originally "This sentence has seven words in it", and got translated back and forth until it wasn't true.
Why does 'besteht' not have a definition of 'consist' under it and just 'exists' instead?
Ah, hover is a very fickle friend. Very often it gives interpretations which do not fit in the present sentence. You should report it; I have.