I would not translate "interaction" as "Umgang". When I hear "Umgang", I think of the people that someone has contact with. But this is not "interaction"; it's rather "(bad) company" (I think "Umgang" is mostly used with a negative connotation; "Was hast du denn für einen Umgang?").
"Interaction" can be "Interaktion" (if it refers to people) or "das Umgehen (mit anderen Personen)" or "Wechselwirkung" (if it refers to technical components, for example).
Someone would really have to show me a sentence in which "interaction" can be "Umgang". I can't think of any.
I just searched a little further and found instances in which "Umgang" can be translated as "interaction". For example: "Der richtige Umgang mit Menschen" (the right way of interacting with /dealing with people). But you can see that even here, I would not use "interaction" as the translation because "interaction" refers to individual actions, whereas "Umgang" means the whole approach. This is my understanding.
Let's wait for other opinions.
I found the thread in the other direction: https://www.duolingo.com/comment/12785201/Der-Umgang
It includes one sentence "Der Umgang mit ihr war nicht wirklich gut", translated to "The interaction with her was not really good". This looks OK-ish to me (although I think I would phrase it differently in German). But interestingly, the other sentences mentioned in that discussion do not give these "der Umgang" "the interaction" as equivalents.