You're partly right, party not.
When we think of common rolling/slipping/friction problems, the most common is a round object on an inclined slope. In that situation, if there is no friction, the object slides down the slope. Friction is needed to create the torque that leads to rolling - the force of gravity acts parallel to the slope through the centre of the object, and friction acts parallel to the slope in the opposite direction through the edge of the object. Hence torque, and rolling. If maximum friction is sufficient, the object will not slide, only roll.
But your yoyo is different. In a yoyo, the string is tied to the middle and wrapped round many times. If the string can't stretch (inelastic), then literally, sliding simply can't happen. The only way the yoyo can descend at all, is if it unwinds on the string. So it is completely independent of friction in that sense.
Alternatively even if it wasn't tied, we might think that the string windings create enough friction to stop the string sliding on the axis anyway. That doesn't have to be friction with the axis alone - if there is friction between string and string, then the string "locks" itself on the axis too. You can see this by wrapping string round a tree branch many times and trying to pull it free - the friction between string and branch, as well as string and overlaying string, locks it so it can't slip.
But now imagine a yoyo where the string wasn't tied,but was just wrapped many times. We could imagine a frictionless yoyo, or one that had almost unwound and the last part of the string was not secured by a knot. Then the string could slide around the yoyo, to release some length. That would alter the outcome.
So the question rules out that scenario by stating that at no.time, is there a situation where the string can slide around on the yoyos axis. Its either tied, or there is enough friction to prevent that. That's to ensure you solve the problem they intend, and practice that specific skill set, and don't complicate it.