(I'm sure you dont need to include all variants of a word to be relevant for that term, not only is google cleverer than that but it might not look consistent to your users.)
Yes, Google can ignore certain words or phrases, though the keyword content is just a frequency count. It doesnt mean you will or wont rank for terms listed. :
Q: Why do my Webmaster Tools stats show common phrases such as "buy
now" that are not directly related to my site? A: While some common
words and phrases are filtered by Webmaster Tools, there may be some
that you use which are not. Having these words or phrases listed in
your Webmaster Tools account does not mean that our algorithms will
view your site as being only relevant for those keywords. While
Webmaster Tools mostly counts the occurences of words on your site,
our web-search algorithms use well over 200 other factors for
crawling, indexing and ranking. In other words: don't worry if you see
keywords like this listed in your Webmaster Tools account.
https://sites.google.com/site/webmasterhelpforum/en/faq--webmaster-tools#strange-words2