She appeared beautiful to me is also correct (and ironically a suggested translation). Strange it is marked as incorrect
Try not to peek, I used to peek and Duolingo would make me repeat lessons very often. There's a peeking penalty.
If you're referring to the hints that appear when you hover over a word -- those are not "suggested translations".
They may or may not be applicable to a given sentence. (Though the further up a hint appears, the more likely it is that it could be put into a reasonable translation.)
In most cases, you can choose either. This time, however, we can assume it is a "she" because of "güzel" ("beautiful"). This adjective is usually used for females, while males would be called "yakışıklı" ("handsome"). :-)
how would you say "you looked/seemed/appeared beautiful to me"? I thought it also used "gorundu".
nvm i am pretty sure it should be "gorundun" for you. About 80% sure, still would like to get confirmation about it.