"¿Sabe usted dónde está la universidad?"
Translation:Do you know where the university is?
That word order is not correct and does not sound natural. In this type of sentence the subject comes before the verb in English.
"I don't know where she is" is correct.
[I don't know where is she] is not.
The word is "about," not "bout." "Bout" is a word that means "fight," as in professional boxing.
The interrogative adverbs used in questions are why, where, how, & when. These adverbs are placed at the question's beginning. Interrogative sentences are typically marked by inversion of the subject and predicate; that is, the first verb in a verb phrase–also known as the helping verb–appears before the subject, as in "Do you know where the university is?"
It could be "sabes." If duo gives you the English to translate, "sabes" should be accepted as well as "sabe usted." There is nothing in the English to tell you which to use. In fact, "saben ustedes" should also be correct here.
Hmmm, the location of the university seems quite permanent. Not enough to warrant "es" instead of "está"?
Probably, parties are considered events of specific duration and therefore worthy of "es" because they exist for a limited time and then have a definite end.
As for using "estar: for location, the rationale for "estar" is that the university could burn down, move to another location, go out of business, etc. Equally, none of these things could happen. Either outcome is possible, and thus, there is no definite "end."