"That is the bathroom."
Translation:Das ist die Toilette.
Re comments below: It is marked wrong because Americans say 'Where is the bathroom/rest room?" when they mean "Where is the lavatory?" It would seem that this course makes no allowances for the fact that American English is in many repects different from (The Americans say 'different than') UK Standard English.
In this case the first article is not the engendering article, and so gender is irrelevant to it (it can be considered gender-less), which is why it would be das. Another example: you would say Das ist meine Wassermelone not Die ist meine Wassermelone since the engendering descriptor is attached to the possessive pronoun. "This" is essentially undefined for the purpose of gender in these sentences until you get to whatever "this" is describing. Does that make sense?
Toilette means toilet. It doesn't mean bathroom. Americans say "go to the bathroom" when they mean "go to the toilet". That's fine, but in German Toilette and Badezimmer are different things, and they match the English was of saying it, so Badezimmer should be accepted - particularly since it is the first word given in the tips!