Complex sentence: Lily sees him and knowing that he laughs when she says the word, she blurts it out and the whole church starts laughing, including Cam who picks her up and runs out of the church apologizing.
Split into simpler sentences: Lily sees him and knowing that he laughs when she says the word, blurts it out. The whole church starts laughing, including Cam who picks her up and runs out of the church apologizing.