"집이 불에 타요."
Translation:The house is on fire.
집에 불이 났어요 is a lot more natural than the above Korean sentence. No one in Korea says 집이 불에 타요. The literal translation for that would be "The house is burning in fire".
Coming only with knowledge from previous duolingo lessons I first thought this was "The house rides by fire"
Same i got confuses too but i guess context is literally what you have to look for