Translation:I am well, thank you. And you, how are you?
I think Duolingo is mimicking the Arabic sentence (which is in fact not proper Arabic even).
The proper way to say "how are you" in proper Arabic would be كيف حالك (kayfa Háluk) to a male, and (kayfa Háluki) to a female. The sentence above is more like Syrian/Lebanese variety
The word حال (Hál) on its own means (situation). And the word can be used under the linguistic umbrella to mean (adverb). Thus, (Kayfa Háluka) -we can drop the final "a"- means (how are you) to a male, while (Kayfa Háluki) -the final "i" not dropped here to make it clear it's dedicated to a female- is used when talking to a female.
We can expand this further:
Kayfa Hálukumá كيف حالكما؟ (how are both of you) -whether male or female-.
Kayfa Hálukum كيف حالكم (how are you all) to a group of males or a group of mixed genders.
Kayfa Hálukun كيف حالكن (how are you all/f) when dedicated to a group of females alone.
Kayfa Hálí كيف حالي (how is me), I know sounds weird but just to make things complete here.
Kayfa Háluh كيف حاله (how is he).
Kayfa Háluhá كيف حالها (How is she).
So. in a nutshell, it's asking about the situation or the status, this is how one would ask (how is someone or something) in Arabic. The expression كيفك is completely improper in standard Arabic, because typically one does not attach a personal suffix like ـك (-you) to an interrogative article; This does not happen in Arabic. This is only used in dialects across the Arab world and specifically in the Levant (Egyptians and the Gulf people would do the same but with a different interrogative article).
For anyone wondering, no one talks like this! While the extra how are you is not necessary, if you want to use all the words, swapping the last two words around would sound more natural but remember to break after thank you. So, أَنا بِخَيْر شُكْراً كَيْفَك أَنْتَ؟ More often used when you forget to ask quick enough
The whole thing can be shortened in fact to أنا بخير شكرا، وأنت؟ (I am good thanks, and you?).
The thing is that the word كيفك is a dialectical one and not proper Arabic. In Arabic, you don't merge the personal suffixes like ـك with interrogative articles like أين (ayn: where) and كيف (kayf: how). Merging such suffixes with interrogative articles is found mainly in dialects.