Translation:Because of that we are going to offer you a better place.
I also translated it location and got it marked wrong. I think it should be accepted and am going to report it.
For "position", Spanish has "posición", which can be used in idiomatic constructions that resemble uses in English (like, as a synonym for "status", "standing", or "rank").
I agree with the posters above who think "location" should be accepted, though. Both lugar and location descend from Latin "locus".
I notice duolingo accepts "for that" and "because of that". In english those are two very different ideas. "Because of that (that= something bad like the house flooded), we are going to offer them a better place." vs "We are going to offer them a better place for that" (that = something they want to do, like play ball)."
"For that we are going to offer..." would be very hard to interpret as "for that reason". A native English speaker is going to see "In exchange for that..." I agree that the Spanish logic of "por eso" is very much like "for that [reason]", but in English, the "[in exchange] for that" reading is dominant, so you need to make "reason" explicit, or switch to "because".
They are two different ideas, you're right. However in this case it can be translated into "for that" or "because of that."
Note, however, that the "for that" sense would mean "in exchange for that," not "in order for that" as in your second example of playing ball. That configuration would use para, not por.
I got the answer right, but what I am struggling with is Duolingo's translation which starts out with Because of that. So I looked up "Por eso" I don't remember Duolingo teaching us this before. According to the dictionary "Por eso" means (Therefore/That's why). I found no reference to "Because of that" other than it seems similiar in meaning. Duolingo is making me crazy when it comes to sentence structure. Is there some kind of logic behind this. Please let me know if anyone has a reference to this.