Subject Pronoun [ This / These ] [ Это ] ‧ remains neuter, not inflecting to decline:
Что это? ‧ What is this? & What are these?
Это вода | дело | рис ‧ This is: water | business | rice
Это яблоки ‧ These are apples
Demonstrative Pronoun [ This / These ] [ Эта Это Этот Эти ] must inflect to decline with Gender and Number [ and Case later] in Agreement with it's Noun:
Эта вода наша ‧ This water is ours [ Это -> Эта feminine ]
Это дело не твоё ‧ This is not your business [ Это nueter ]
Этот рис ваш ‧ This is your rice [ Это -> Этот masculine ]
Эти яблоки мои , не ваши ‧ These apples are mine not yours [ Это -> Эти plural ]
‧ Olimo's Это usage guide ‧ forum.duolingo.com/comment/11536858/A-Guide-to-Using-ЭТО ‧
There is absolutely nothing in the tips and hints that would suggest 'этот' means (or has to mean) "this". It only says to follow the gender of the noun. There's also no possession here, so it's completely reasonable to think it's "the movie". But apparently that's not correct.
This might be another case where the information you need is on another tips and hints page... that is locked. That's happened to me before, I had to go up 2 or 3 levels just to unlock the instructions. If that is the case, maybe some things need to be reorganized. Where is 'этот' first explained?
Edit: The only time I hear a pause is in the slow version, and it's only there to help distinguish between words.
кино and фильм are just different words, typically used in different contexts (even though кино may be used for a movie, we rarely use the opportunity).
But what you said about фильм is correct. In English, films were filmed on film (OK, shot on film) but in Russian фильмы снимали на плёнку.
It should only be expected. Loanwords are more often than not borrowed in a particular meaning, whereas their meanings in the original language are more diverse.
The answer must include the word for "this". I have the Russian to translate to English so the answer for "этот фильм" is "this film". If you had the English "this film" to translate into Russian and you were using the transliteration instead of Cyrillic, then it would be "etot fil'm", I think.
I highly recommend the Cyrillic alphabet though, since you have to learn which latin letters stand for what anyway. https://www.duolingo.com/comment/11449014
филм actually sounds quite close to the English "film" (if only you could tweak that pesky vowel...)
However, the Russian word is фильм, with an L similar to L in "lemon", but a bit more forward and with a tongue raised. English does not do this, not at the end of the syllable. Germans, on the other hand, pronounce all their Ls the same. . .
We have a dark L in that position in English, in fact with my accent I tend to pronounce it as a W, which is what has happened to the Polish Ł. So for some reason in borrowing this word from English the Russians have palatalised a consonant that shouldn't be, while passing up an opportunity to use ы instead of и which I think is closer to the English short i
You see, the word was borrowed... quite some time ago. Besides, borrowing always adapts the word according to what speakers are comfortable with AND what they think a foreign word should sound like. Western European languages tend to have alveolar L. The consonant sounds palatalised to a Russian ear, so loanwords are often stuck with that—when there is no vowel (e.g., контроль, панель, альтернатива). I did not see extremely old English films but I think the "dark L" was not as dark a century ago.
Western European languages do not have Ы, so you never get it in English/French/German loanwords—at least, in recent ones (рынок "market" is a Germanic word, after all).
This is the thing with old loanwords: languages change. For example, today "Donald" may have a dark L; the word was introduced as Дональд a long time ago (and was it even from English?). It is funny how Russian McDonald's consistently spells their name as Макдоналдс. Then again, some people spell "defence" and "fense" the same way; some do not.