Translation:De bioscoop is hier in de buurt.
Why bioscoop is not translated to cinema instead of 'movie theatre'?
Because there are multiple words in English it can be translated to.
What is the use of the word "hier" in this sentence ?
'In de buurt' means 'nearby' and 'hier' indicates that the cinema is nearby 'here'.
You can drop it in this sentence. ;)
Not in the smart phone version ! I was marked wrong for not including it
You probably made another mistake why your sentence was marked as wrong and then the preferred translation (including hier) was shown to you. In this sentence including hier in the answer is optional.