"Ik heb een boek uit de bibliotheek nodig."
Translation:I need a book from the library.
You should be able to. It is literally the correct translation as shown above. If it doesn't accept your answer though, report an issue and select "My answer should be accepted". If it's a listening exercise, type it in Dutch and not in English as translating it counts it as wrong.
What would "library book" be? Boek van de bibliotheek? Bilbiotheekboek?
What's the purpose of "heb" in this sentence? Isn't it basically saying you 'have' and 'need' a book?