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Since many Jewish communities around the world used to speak or still are speaking Yiddish, which is a Germanic language and one of the closest to German, many words in German penetrated to their everyday language. that's true for Jewish English-speakers in words like "mench" and "shmutz" as much as it is true for Hebrew speakers (which is from a completely different language family) in words like:טרמפ-"tremp" < trampen, ביס-"Bis" < bischen (a bite), קנטים - "Kantim" < kante , צימר - "zimmer" (as in a resort rooms for rent), שלוק-"shluk" (a sip) and many more.
The program wants you to take the best and closest translation. Although in the same context 'this' and 'it' would often be interchangeable, the specific sentence it wants you to translate here uses the word 'it', and it's judging whether you can understand the nuances of the sentence (to some degree)