What time is it would be a more natural sounding translation into English.
What is the time is rather rarely heard in my experience.
Is this a UK/US thing? In British English we say What time is it? but use What's the time? too.
No. I'm a native English speaker and "What's the time?" is usually the first thing out of my mouth. It just sounds like you're not familiar with other dialects.
so...what is incorrect about this?
"What time is it? 3 o'clock"
In my example the second "it" is not in the word bank.
I also used the word bank, and Duo said:
You have a typo.
–What time is it? –i̲t̲s̲ three o̲ c̲l̲o̲c̲k̲.
I see the problem. Duo wanted a different way of asking the time.
Nobody ever says "What is the time?". "What time is it?" is the sentence to use, though the options for this are not available.
"Three o'clock" should be accepted as well as "It is three o'clock"