I got "Zahărul se află pe masă" as the correct option and the discussion is headed with "Zahărul este pe masă" as translation for "The sugar is on the table"... what is correct now and what does "se află" mean?
Both can be correct , "se află " means "is found "
Would "pe masa" be wrong?
yep... but it's not wrong if you say "Zahărul este pe masa cea neagra (black table)" so it's wrong only if you don't describe it further.
Where do we learn about this function you are describing?