I accidentally wrote "öestereich ist ein land" and it said my answer was wrong. Not even a "hey there's a typo in there".
I think it generally forgives one typo, as long as the result is not a valid word (e.g. turning "woman" into "womon" would be considered a typo; turning "woman" into "women" would be considered using the wrong word).
But Öestereich has two typos: the extra -e- after Ö and a missing -r-. (And you did not capitalised Österreich or Land, but Duo generally ignores capitalisation.)
st- at the beginning of a syllable is pronounces scht-, as in Stein, Stock, Stab.
-st at the end of a syllable is pronounced -st, as in fast, bist, hast. This pronunciation is also used in words such as hastig (hast-ig) or fasten (fast-en) or Osten (Ost-en) or Österreich (Öst-er-reich).