Translation:This is a cafe.
ここ means "here", it's used for places, where you are at the moment. これ means "this", it's used for things, like an object you're pointing at.
If the sentence used コーヒー it would be talking about the thing you have in the cup in front of you, the coffee, and you would use これ. But it used カフェ which is a café, the place you go to drink the coffee and use the free wifi, so it's ここ.
Input auto-corrects to "This is a café." , which is accepted as a correct answer and rightly so. However at the same time I am rebuked by "Pay attention to the accents" and shown the answer as "This is a cafe" cafe without an accented e being underlined. Even as I type here the auto correct plainly wants to correct cafe to café Incidentally, my default dictionary is set to UK English. I appreciate this seem petty, but there does seem to be conflict somewhere.