Gente could mean people - population? The Italian people does not like to speak other languages... The Brazilian people likes soccer ball.
People is plural of person. Persons is correct and it's used in formal ways. Peoples is plural of people as population, community...
So, I'm wondering if gente could be translated to people. Can anyone try to explain? :-P
"Questa gente" is correct. The hints often look at only one word with no context. In this case, that is not the same as the meaning in the context of this sentence. Earlier comments explained that 'la gente' is a singular, female, collective noun, so 'Questa" is correct.