"You are eating the bread."
Translation:Ihr esst das Brot.
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I understand the difference between Ihr and Du, but these sentences do not give you an indication that it's plural or not. I ran through this lesson the first time and it said this similar sentence is singular, on the redo it says it's plural. I am on the lesson learning about you in plural form. If you are going to through in a trick question from another lesson reference then Duolingo should either state whether it's plural/singular context or add a picture of a person or a group picture to help give someone a better understanding of which form of 'you' should be used. It's challenging enough trying to spot the correct grammar.
In this case, it could either be 'you' (formal) or 'they' as "essen" would be appropriate conjugation for either. Since the question asks for instances of "You are eating the bread," this is a correct answer as "Sie essen das Brot" could mean "You (formal) are eating the bread."