The lights on the mini lights I've been using are strung about 2.5" apart. So there's a limit to how big a gap you can jump. An example of how to deal with this is shown here. I've rendered the dots larger this time, but keep in mind that on one-inch pegboard, the holes are one inch apart.

Start the "Y" with the green dots shown here, going from the top towards the bottom of the Y. Then follow the red dots up to the top, and then down to the blue dots to finish the Y and start the R.

On the R, follow the green dots to the end of the leg, then follow the red to finish the bottom half of the letter.

The basic idea is that if you need to traverse a segment twice (as you'll need to do at the top of this R) skip every other dot on the way out and then fill them back in on the return. (You might be able to handle this R a little differently and end up at the bottom left, and jump across to the other R's leg. Working out whether this is feasible is left as an exercise for the reader.)

The diagonals give us the most trouble, because skipping a dot means a 2.8" jump from one light to the next to go over two dots and down two dots. In comparison, a knight's move -- over two and down one, or the other way around -- is only about 2.25", and of course skipping a dot vertically or horizontally is just a 2" gap.

Because sometimes you'll have trouble making it work, I've deliberately laid out these patterns so they don't use quite every single light on a 100-light string. So if you have to leave one of the lights unused to bridge the gap between spots, it can be done!

You'll also notice that if you finish the white lights at the top of the C, it's a considerable jump to start the yellow (right leg of the H). But that's okay, because you'll be connecting two strands together and the tails have a little extra slack. If it was a concern, you'd just go every other dot on the H crossbar to get to the top left of the H, do the C, come back and do the bottom of the H.

EDIT: I just bought some 100-light strands and it says they're 247 inches long. So that's just 2.47" on average. No wonder I had trouble stretching them to cover those 2.8" gaps!