Your translation is as right as the translation duolingo suggests. My translation is how I would translate the sentence. The German has the infinitive with zu. You might want to Google for that :)
Well, I would say that is also correct. I should mention that I am not a native English speaker but I do consider me fluent in the language.
"There is nothing here to see" is equivalent to "There is nothing to see here" and is incorrectly marked wrong.
This link dealing with the particle "zu" in German infinitive clauses is really useful. http://www.dartmouth.edu/~deutsch/Grammatik/WordOrder/Infinitives.html
Aside from semantic nuances, can someone explain each both of the following is not correct: 1. There is nothing here to see 2. There is nothing to see here
Duo marked #1 as wrong while offering #2 as the correct translation. Both are perfectly idiomatic English sentences.
"Nothing to see here" is a well-known phrase in English. It's what you expect a policeman to say to the crowd when clearing a crime scene. But it isn't the only idiom that translates this phrase. "There is nothing here to see" is the natural way to say it when the focus of the sentence is on the place and not on the activity of the onlookers. For example, you might hear it in a role playing game, as a place description.