In LiveCode, there are two ways to get a character from a UTF16 string. If the string is displayed in a field, you can do
select char 3 of fld 1
and if you have a Russian or Polish text in the field, it will correctly select 1 character. However, this feature isn't very well developed in LiveCode and will fail with many Chinese, Japanese and Arabic (and other) languages. Therefore, it is better to use bytes for now:
select byte 5 to 6 of fld 1
The latter will also be compatible with future versions of LiveCode, while the former may not be.
Anyway, you have your string in a variable, which means you have to handle the string as bytes (you could use chars, but bytes and chars are dealt with in the same way in this case, because the data is in a variable). You can iterate through the variable with steps of two, i.e. one char at a time:
repeat with x = 1 to number of bytes of theUFT16String step 2
put byte x to x+1 into myChar
// do something with myChar here, e.g. reverse the bytes?
put byte 2 of myChar & char 1 of myChar after myNewString
end repeat
// myNewString now contains the entire theUTF16String in reverse byte order.
(You could do this in 3 lines instead of 4, but for the purpose of the example I have added a line that stores the bytes in var myChar).