Translation:I do not understand what you are pointing to.
This makes absolutely no sense in English. In the unlikely event that a native speaker used this sentence they'd at least use the gerund, "I don't understand what you are indicating", but even then it's a strange choice of word.
Assuming it's idiomatic Italian, however, what's the implication? Would a more accurate, in terms of sense, English translation be 'suggesting' or 'implicating'
"I do not understand what you indicate." (Duolingo)
"you indicate that I have made an impression on you" (Dale Carnegie, American author,
You can find dozens of literary quotes using "indicate" as used in this exercise.