Note: this is tricky in general.
Yes, the answer that there is only a physical change here is typically considered correct, and is a good approximation. However, there is no sharp border between the chemical and physical change. When sugar dissolves in water its molecules create hydrogen bonds with water molecules, these are way weaker than bonds between atoms in the molecule, which makes our assumption ("physical change only") reasonably correct. But for other compounds hydrogen bonds become stronger and stronger, then some other, comparable intermolecular bonds start to play an important role - at some point it is impossible to say whether the change is strictly chemical or strictly physical.
Take out lesson: there is a continuity of changes, that are not always possible to classify. In most cases we don't have to care about that.
Take out lesson 2: real world doesn't care about our classification attempts and will always fling at us examples that are not possible to classify.