* Homonyms: Words that sound the same but have different meanings and spellings.
* Hair: Can be spelled "hair" (as in head hair) or "hare" (as in a rabbit).
* Principal: Can be spelled "principal" (as in the head of a school) or "principle" (as in a rule or belief).
So, we need a state that has a name that can be spelled both ways for "hair" and "principal".
The answer is "Maine".
* Maine can be spelled "mane" (meaning hair on a horse's neck).
* Maine can also be spelled "main" (meaning the most important or significant).
Let me know if you want to try another word puzzle!