"Does she live in India or America?"
Translation:वह भारत में रहती है या अमेरिका में?
yes; when kyaa is placed at the very beginning of the sentence, it turns a statement into a question. For example, Mein tik hu is I am okay, versus Kyaa mein tik hu? meaning Am I okay? When it kyaa is placed within the sentence, it means what. For example, Yaha kya hai?, what is this?
Actually this is very wrong. If you said 'wha kya khaati hai' then it would be right. Even if you just wrote 'wha kya bharat main rehti hai' it would be altight but since 'ya america main' is added it becomes grammatically wrong. You will learn more on this later. Happy learning. :)
Exactly! What gigichicken said is correct. I can give you another comparison with English that maybe helps you too see the same logic in other language.
You can also notice, in English you have different "question starters".
Some questions start with a interrogative particle such as what, where, when, etc. For example: where do you work? What do you do? When do you wake up? Those questions ARE NOT yes/no questions.
There are other questions start with an auxiliary verb, such as have, to be, can, should, etc. For example: do you work? Have you been here before? Should I answer? Those ARE yes/no questions.
Same thing happens in Hindi. Some questions are YES/NO questions, and start with Kya and some questions are not and have a different question starter: they start with subject and can either contain a question particle (Kya, Kahan, vahan...) or follow another construction that makes it a question (for example ya + question mark)
At the beginning of a sentence, kya means 'is it the case that [...]' - i.e. it forms a 'yes/no' question. In the middle somwhere, it takes the place of the object - e.g. 'what did she eat?'
Neither works here, unless you want to ask if she lives in either India or America (but you don't care which).
For the same meaning: yes; to answer the question on Duolingo correctly: no.
(In general it wouldn't know you understood which had which meaning, imagine the other country was more different than America/अमेरिका - Duolingo would have no way of knowing you'd correctly remembered which was which, and hadn't got the correct two words but mixed them up.)