Translation:It is a meeting place for the entire village.
That sounds odd to me. I would not use "all" when referring to a word like village, group, dozen...that signifies a set. "All" would mean "everyone" so the way I would use it in a sentence would be "all in the village". But that is a different sentence whose focus is no longer the village as a unit...but the individuals that make it.
So "whole village", "entire village" work better here.
I believe "all of the village" is synonymous with the "whole village" or "entire village."
"It is a meeting spot for all of the village", was marked wrong but is also correct.
It is incorrect because "tous" is for masculine plural, but "le village" is masculine singular.
C'est incorrect parce que "tous" est pour la forme masculin pluriel, mais "le village" est masculin singulier.
C'est can indeed be "this is", "that is" or "it is". So unless anything else was wrong, it should have been accepted.
"it is a meeting place for everyone in the village" wouldn't this be acceptable too, because it would obviously be meeting place for the inhabitants rather than for the town or buildings themselves?
Since you are translating the given sentence, tout le village translates to "the whole/entire village". Had it been tout le monde dans le village then "everyone in the village" would have worked.
A village is not just the houses in the country but also the inhabitants, hence the saying "It takes a village to raise a child".