"Ich trinke Wasser" vs. "Wir trinken Wasser"
Why "Ich trinke Wasser" translates into I am drinking water (present continuous) and "Wir trinken Wasser" translates into We drink water (present simple)?
I'm confused shouldn't be both present simple?
German has no present continous, so in German simple present is used in cases where you would use present continuous or simple present in English. Because of this, German present can usually be translated into either tense in English (unless one of the tenses just really doesn't make sense).
I see you just started using Duolingo, so I guess maybe you don't know about Tips and Notes. There's a lightbulb right near a kay when you click on a skill. By clicking on the lightbulb you can see the Tips and Notes about that skill. The answer to your question was already mentioned in Tips and Notes. Enjoy learning here! :)