For it to be an object it would need to be औरत को. It's the case whenever (or anyway usually) the object of a sentence is a person that it has to be followed by को
Because it would then become a very unnatural sentence. To new learners, that might not be evident so you have to check these off as you go.
रही would make it present continues tense and so this would mean "she is watching/looking/seeing"
Sorry, mistake in translation, I ment "That woman is watching/looking/seeing"
To me it sounds like the words औरत and देखती are being blended together by the speaker of the audio to say औरतादेखती as one word... So far in this course औरत has not been pronounced as औरता...
What does this sentence mean? That she can see? That she watches or looks at some unspecified something?
This is a weird Hindi sentence. Most people would say
वह औरत देख रही है।
Sounds much more natural and translates to - that woman is watching.
Yes, it means she watches or looks at something unspecified. She can see will be वह देख सकती है।
It's not that unusual. In English we say "I see" all the time without a second thought. It is usually intended to refer to insight or understanding rather than literal vision.