"He likes that."
Translation:Ele gosta daquilo.
More specifically (and a little confusing): close to the speaker = este or esta or isto, close to the listener = esse or essa or isso, far from both = aquele or aquela or aquilo.
However, these days people will use "este" and "esse" (and their counterparts) interchangeably, at least in Brazilian Portuguese. Duo sometimes accepts this, and sometimes doesn't.
In this case since we know it's not close to the speaker (este, esta, isto), and we don't know any specifics (esse, essa, aquele, aquela), then only isso or aquilo will work... Just don't forget the "de" or d+ before either of these.
p.s. This was written on my phone, so please excuse any spelling or grammar mistakes