the ability to read and write

Far more resources are needed to improve adult literacy. 提高成年人的读写能力所需要的资源还远远不够。

The country has a literacy rate of almost 98%. 这个国家接近98%的人有读写能力。

knowledge of a particular subject, or a particular type of knowledge

Computer literacy is becoming as essential as the ability to drive a car. 会用计算机与会开车一样将成为一种必备的技能。