Translation:The university is a university in Germany.
Because in both Arabic and English, "The university is in Germany," "The university is a university in Germany," "The university is German", and "The university is a German university," all have slightly different meanings.
The first two give the location. And the second two just say it's German. But you could potentially have a German university that's not actually in Germany.
2 and 4 also heavily imply that there are other universities that fit the description. You would use those sentences if you were talking about German universities or universities in Germany and wanted to specify that this particular one is one of them.
And while 1 or 3 do allow for the possibility that other universities fit the description, you would use them if you were already talking about this specific university and just wanted to say something about it, without alluding to the possibility that there are others.
Having learners translate literally helps test all the little grammatical nuances in the Arabic sentence so people know which of these four very similar sentences are appropriate or not appropriate for a particular situation.