Translation:I'm going to wrap the cookies with this paper.
Yes, Clare, "I am" and "I'm" do have the same meaning. The apostrophe is there to indicate the missing letter.
Note: Duo is very keen on the use of contractions like these, and invariably uses them in its English, doing so even when a native English speaker would not.
This may be true because it is a French course.
In French, the use of contractions (example: l'hôtel) is considered a graceful speaking style, one that flows smoothly. Therefore, using contractions -(wherever possible!)- has become the more formal kind of French language.... even when it is written down.
The opposite is true of English.
While we use contractions in speech all the time, and at all levels of society, we do not write them down unless deliberately indicating an INFORMAL pattern of speech... being "friendly," say.
So, in using so many English contractions as it does, it may be that Duolingo is applying French conventions of expression to the English translations .. and is doing so even when not really appropriate.
This is the conclusion I have come to. If I'm right (!) and I think I am, it is not the only thing Duolingo gets wrong with the English of this course.
Don't get me wrong! Duo is great, and this course is amongst the best. But it does have its "characteristics," shall we say?
I hope this was helpful. :-)