Generally include, how my design progress, encountered major problems and solutions, implementation or not does not matter; in how many times with the instructor to communicate with the original idea of what to change; funding issues, the use of the situation; the next step in the plan and so on. It should not be asking you what problems exist in this system.
You can see if there is a big paragraph in the paper that says "key technologies, key issues", and if there is, then it would be like saying: we have identified several key issues in the early stages of the project, such as what so and so. Now there are still a few key problems that have not been solved, and we are going to do something about it for the time being. Also you can describe the distribution of team tasks and so on and so forth.