"Csak te látsz." means "Only you can see.", "Only you are able to see."
It's like saying you're the only one who isn't blind.
The "-hat, -het" ending can be used in a lot of different ways, here are some English examples.
Yes, both English translations should be accepted.
The difference between "you see" and "you can see" is simply not important in Hungarian. If I see you, I can see you. And I can see you means I see you. Most of the time.
Unless I say "I can see you tomorrow at 2:30".
Hungarian does not use the "can" version for these kind of statements like "Can you see me now?", etc. This one would be simply "(Most) látsz?". And "I can see you" is just "Látlak".
For appointments and such, Hungarian usually uses different words, like "fogadni", "találkozni", "viszlát".