As the name clearly indicates, this section of the Advanced exam is designed to test your lexical (vocabulary) skills. In this task there is a text with ten gaps (plus one example), then at the end of each line with a gap you will see a word in capital letters, eg USE. You must form a new word based on the word in capitals to fill the gap. So. from USE, you might form useful, usefully, usefulness, useless, user, usage, etc.
You need to decide what kind of word (part of speech) goes in the gap: an adjective (e.g. strong), a verb (e.g. strengthen), a noun (eg strength) or an adverb (e.g. strongly). You must also spell each word correctly and write IN CAPITAL LETTERS to get the mark – US and UK spellings are both accepted.
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http://usafiles.net/2FVd/500-Word-Formation-Exercises-for-Advanced.pdf