Your screenshot shows that the blue dots are right above the spaces characters. I would have expected them to mark the spaces right between the surrounding characters, not above. Also the line height looks weird (clearly seen from the selection). Could there be some issues with the base line of text? There is a super script in the second line. How did you create this?
You could also copy the text and past into a new TextEdit document. This might still look weird but you can then change the format to "Plain Text", dropping any kind of formatting. Copy that plain text and paste it back into your pages file in a place where the formatting seems correct (either before or after the distorted line), then delete the weird stuff.