Is "cut" here used in the sense of she cuts the fabric to sew a blouse? Or are we talking random destruction of clothing because DuoLingo has to use verbs we already know and "come" would be too weird? ;)
Well, even if "She cuts her blouse" is a correct answer "She cuts the blouse" is correct too. In fact, it is the answer displayed at the top of the discussion. Perhaps there was a typo in your answer you didn't notice.