I get the answer in plain text only. I also didn't really understand the for each loop. Could really use some help !

When I test your code and ask for my current progress I get the answer instead. <br>E.g., if the answer is 'hello' and I've guessed 'h' and 'o' I am getting 'hello' back rather than 'h---o'.

To fix this you need to modify your getCurrentProgress() method so that it displays hyphens for unguessed letters. Here's one way you can do that:

 public String getCurrentProgress() {
   String progress = "";
   for (char letter : mAnswer.toCharArray()){
      if(mHits.indexOf(letter) >= 0){  //if letter found
         progress += letter;           //append letter to progress
      } else {
         progress += "-";              //append hyphen to progress
      }
   }
   return progress;
 } 

Now, re the for-each loop. What it's doing is traversing letter by letter (char by char) through the mAnswer string.
It checks to see if each letter of mAnswer is in mHits or not, using the indexOf method. If the letter is in mHits, it is added to progress. If the letter is not in mAnswer, a - is added to progress instead.

Here's a test program:

public class GameTest {
   public static void main(String[] args) {
      Game g = new Game("hello");
      System.out.println(g.applyGuess('h'));
      System.out.println(g.applyGuess('o'));
      System.out.println(g.applyGuess('t'));
      System.out.println(g.getCurrentProgress());

   }
}

With its output:

true
true
false
h---o