Translation:The teacher is not home.
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I think Duolingo is not contacting words. By that I mean Duolingo is not able to figure out that "is not" is equal to "isn't". My answer was exactly the same with yours apart from the contraction. I put "The teacher is not at home" and it was accepted which means the problem is with the "isn't" versus "is not". I hope they will update this soon. :)