I think i have all the functions i need, what is wrong?

Jason,

Starting with your code, I made a few modifications to make it work.

1. Since strings are immutable, sentence.lower() will not save the lower case version unless you assign it to a variable (just reassign as in line 2).
   
2. No need to initialize "number" to 1 since it is not being used as a counter, but rather is assigned the result of the built-in count method run on the word_list with the search parameter being each word.
3. As mentioned in 2 above, the count method takes 1 parameter, which is the string it's looking for. In this case we need to search the entire word_list, and as you correctly looped through the individual words of this list with "word", that is the string we want count to look for each time in the word_list.
4. The "format" method works on strings, not dictionaries. To build the dictionary you only need assign each key (word) in the dictionary to it's word count (note: since the for loop comes across "I" twice, dic["I"] = 2 is executed twice, making this way of doing things a little redundant, but still correctly getting the job done).

Finally, I believe most of the challenges want to "see" a return statement at the end. Just for testing, I added a print statement to the script.

def word_count(sentence):
    sentence = sentence.lower()
    word_list = sentence.split()
    dic = {}
    for word in word_list:
        number = word_list.count(word)
        dic[word] = number
    return dic

print(word_count("I do not like it, Sam I am"))

Now, if you study the collections standard library, you'll find a handy function called "Counter" and can simplify even further as below:

from collections import Counter

def word_count(sentence):
    sentence = sentence.lower()
    word_list = sentence.split()
    return Counter(word_list)

Try it!

This helps alot, i'll take a second swing at it, Thanks!