Errno 2 No such file or directory in Python

I'm trying to run the following code but I keep getting this error every time I run it:

[Errno 2] No such file or directory: 'words_sorted.txt'

This is the code I'm trying to run but can't figure out how to not get this error. I have also attached the txt. file

#function definition
def words_with_letters(words, letters):
    #if letters is empty string then return words list
    if letters == "":
        return words
    
    #new list for storing all the subsequences
    subseq = []
    
    #iteration over the words list
    for word in words:
        
        index = 0
    
        #iteration over the word string
        for char in word:
            #letter which is initialized to the first letter of letters string
            letter = letters[index]
    
            #if letter is found in the word string
            if char == letter:
                #updating the letter to next letter of the letters string
                index += 1
      
            #if end of letters is reached, adding the word to subsequences
            if index == len(letters):
                subseq.append(word)
                break
    
    return subseq
    
#creating empty list for storing the words in text file
words = []
#opening the text file in the read mode
with open("words_sorted.txt") as file:
    #iterating over the file object
    for line in file:
        #removing the newline character from the line and adding word to the words list
        word = line.strip()
        words.append(word)