This reminds me of forms explicitly requesting filling-in your name "exactly as written in your passport", only to directly refuse any non-ascii characters (like any accents).
They probably mean the name as written in the Machine Readable Zone (MRZ) name field of the passport. Each issuing country chooses how to transliterate names to match the MRZ encoding as needed. The MRZ allows the characters 0123456789ABCDEFGHIJKLMNOPQRSTUVWXYZ< and no others. The Visual Inspection Zone (VIZ) CAN contain characters outside this set, though SEVIS recommends including a transliteration into the MRZ character set as well.
