"Ella me vuelve loco."
Translation:She drives me crazy.
Technically, that is correct. You must keep in mind though that you should try to translate meaning and not words. For example, "Lo siento" literally translates to "I feel it" but we all know that it means "I'm sorry". It can be tough sometimes especially because a system like this is not very forgiving, but I would just suggest to try to translate meaning as well as you can.
Myself, I repeat lessons many times and not because i lost anything or because of any penalties but because to able to become fluent in a new language one must become utterly familiar with it.. And that can only occur through massive expoisure to it. And I do mean a lot. A seriously great deal. Therefore any hard feerlings about having to repeast lessons amounts to about the highest level of self delusion and confusion about what one is supposed to be doing here.
Because "she is driving me crazy can have more temporary connotations where as "she drives me crazy" (ella me vuelve loco) can be a more permanent situation implying that you don't get along with her in general. It could also imply attraction. She's so beautiful, she drives me crazy. "She's driving me crazy" is best translated "ella me está volviendo loco".
That is a misleading response. A gerund in English is when the present participle of a verb is used as a noun. In Spanish the infinitive is the form used as a noun, so despite the present participle being called el gerundio, there is no gerund on Spanish. There is also no gerund in either this sentence or the proposed answer. At issue here is the present vs the present progressive. English uses the progressive as the default present tense for Action verbs. In other language courses where there is no progressive tense, Duo encourages progressive translation of present tense statements, but since Spanish does have a progressive tense, Duo uses a tense for tense convention so they can control what tense you are practicing.