Yes. Generally speaking, हाथ (hand) can also mean arm (बाँह), forearm (कलाई), and palm (हथेली).
I think because the literal phrase is "Two hands and two feet are close to me." Since the subject is feet and hands and it is plural, we use हैं
I typed मेरे पास दाे हाथ और दाे पैर हैं Duolingo says it is incorrect. Duo doesn't like my दाे
@zeebo7 answered this on another question Are you maybe typing ो as ा+े? He was right. That's exactly what I was doing with the 'o' in do. That's why I got it wrong.