Exactly what I needed...Thank you so much

while trying to search for answer, I found goinkscape.com logo; which has exactly what I want to learn. you can see how the letter "o" has white space that is overlapping to "I".

How best to create this. Please help, thank you

Hi, how can I create a white space around the text which will be placed on top of an image? this will make the text more readable and give the sense that the image is ready below the text. Thank you