Use str_ireplace to perform a case-insensitive string replacement (str_ireplace is available from PHP 5):
$story_body = str_ireplace($arr_query_words[$j],
'<span style=" background-color:yellow; ">'. $arr_query_words[$j]. '</span>',
$story_body);
To case-insensitively compare strings, use strcasecmp:
<?php
$var1 = "Hello";
$var2 = "hello";
if (strcasecmp($var1, $var2) == 0) {
echo '$var1 is equal to $var2 in a case-insensitive string comparison';
}
?>