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I was thinking that I would just let it be without saying anything to them but I don't think that is correct.
Second, stick to feedback about work. No personal attacks.
Third. Direction. Create an actual path and learning schedule to improve them. Can't type? There are websites. Can't read? Read a book/newspaper everyday. Can't speak? Help them join a club.
This is a pivotal moment not just for the intern, but also for you. The impression they carry will remain etched for years, and will also become your market reputation. Take genuine interest in their growth, and they will help you grow.
Don't have to worry about being rude (you don't have to be). In any case, it will help them in the next internship or when they become an associate.
Lastly, as part of Tie I firm, I never expected interns to deliver exceptional work, they are students after all. In just bore in mind the time when I was an intern and the level of limited understanding I had regarding work products.
An intern's job is to make mistakes and learn, not produce output like associates