Thanks for the comment. 'Lle' can mean both of these, I've just looked at the exercise and standardised the answers:-
Here is the definitive answer:- This parking [space/place/spot/lot/bay] is too [little/small].
The square brackets expand to give all the possible combinations, this sentence makes ten, different correct solutions.
Does "yr lle parcio" mean parking bay, or parking lot...? to me, parking lot is the american term for a carpark, which isn't currently an accepted answer. (so the difference between the carpark being full because it's too small/not enough bays, or not being able to park a large car in a small bay)