Translation:My family lives in Canada.
Close. "Mass" nouns take a singular verb, like "fish" meaning "fish meat", and they're not really singular or plural. "Fish" plural means more than one animal, and isn't a mass noun. These two instances of "fish" can be considered different words (like "beef" and "cows"), though they're spelled the same.
"Collective" nouns (like "family") can take a plural verb or a singular verb, depending on whether you're talking about the noun as a unit, or about its members. Either way, it's the same word, not two different words as in the "fish" example.
Saying "my family live..." instead of "my family lives..." is an example of notional agreement.
Anyway, "My family live in Canada" is now accepted.
The plural verb after "family" is very common in the UK I believe, even among well-educated people. This is presumably because the reference to the family is considered to apply to the people in it, and is so common that Duo really should accept it. In Australia you can say it either way without appearing uneducated whereas I understand in the US the singular verb is mostly used. Perhaps some people from the UK and US could comment further.
There are 39 countries drunker than Canada.