"We are reading that newspaper."
Translation:Wir lesen diese Zeitung.
I cant answer it from Duos pespective. The "that" translation would be "Wir lesen die Zeitung." and you will hear "Wir lesen die Zeitung" rarely, instead you will nearly always hear "Wir lesen diese Zeitung.". A realistic Scenario for hearing "Wir lesen die Zeitung" would be that youre pointing with your finger while saying this.
Why isn't "Wir lesen die Zeitung" one of the possible translations? Living in Germany, I rarely heard "jene" used (which is translated as "that"), and "diese" would normally mean "this." So I wrote "die" and it was marked wrong. But, as someone before me pointed out, if a speaker was pointing at the newspaper and said, "Wir lesen die Zeitung" that could mean "We're reading that newspaper." Maybe adding "da" at the end...?