does this mean that she has lived there for four years and continues to live there, or that she once lived there for four years but no longer lives there?
Yes, we don't have a perfect tense. In this case it means she's not living there anymore.
If she's still living there we would say "Вона живе там чотири роки" (similar to German)
Since its past tense I would assume that she once lived there but in Ukrainian there is no present perfect tense so I'm not sure
Ugh, I was this question away from testing into level 5 of this lesson, and missed it on the sentence "she lived there four years", which is correct. As others have done I reported it. Ugh.
Thanks, added, didn't know!
Funny thing.... Before, they were insisting on Present Perfect in this case... Now, all of a sudden, the Simple Past started working! :) Bravo!