A general approach for plagiarism detection is to append the student's text to the source text separated by a character not occurring in either and then to build either a suffix tree or suffix array. This will allow you to find in linear time large substrings of the student's text which also appear in the source text.
I find it difficult to be more specific because I do not understand your explanation of the score - the method above would be good for finding the longest stretch in the students work which is an exact quote, but I don't understand your N - is it the number of distinct sections of source text needed to construct the student's text?
If so, there may be a dynamic programming approach. At step k, we work out the least number of distinct sections of source text needed to construct first k characters of the student's text. Using a suffix array built just from the source text or otherwise, we find the longest match between the source text and characters x..k of the student's text, where x is of course as small as possible. Then the least number of sections of source text needed to construct the first k characters of student text is the least needed to construct 1..x-1 (which we have already worked out) plus 1. By running this process for k=1..the length of the student text we find the least number of sections of source text needed to reconstruct the whole of it.
(Or you could just search StackOverflow for the student's text, on the grounds that students never do anything these days except post their question on StackOverflow :-)).
I claim that repeatedly moving along the target string from left to right, using a suffix array or tree to find the longest match at any time, will find the smallest number of different strings from the source text that produces the target string. I originally found this by looking for a dynamic programming recursion but, as pointed out by Evgeny Kluev, this is actually a greedy algorithm, so let's try and prove this with a typical greedy algorithm proof.
Suppose not. Then there is a solution better than the one you get by going for the longest match every time you run off the end of the current match. Compare the two proposed solutions from left to right and look for the first time when the non-greedy solution differs from the greedy solution. If there are multiple non-greedy solutions that do better than the greedy solution I am going to demand that we consider the one that differs from the greedy solution at the last possible instant.
If the non-greedy solution is going to do better than the greedy solution, and there isn't a non-greedy solution that does better and differs later, then the non-greedy solution must find that, in return for breaking off its first match earlier than the greedy solution, it can carry on its next match for longer than the greedy solution. If it can't, it might somehow do better than the greedy solution, but not in this section, which means there is a better non-greedy solution which sticks with the greedy solution until the end of our non-greedy solution's second matching section, which is against our requirement that we want the non-greedy better solution that sticks with the greedy one as long as possible. So we have to assume that, in return for breaking off the first match early, the non-greedy solution gets to carry on its second match longer. But this doesn't work, because, when the greedy solution finally has to finish using its first match, it can jump on to the same section of matching text that the non-greedy solution is using, just entering that section later than the non-greedy solution did, but carrying on for at least as long as the non-greedy solution. So there is no non-greedy solution that does better than the greedy solution and the greedy solution is optimal.