Sentence structure help!!?

You want the second sentence. "People often confuse friendship with love." This sentence says the thing people are confusing is friendship, and they are confusing it with love. Which is what you want to say.

Of course, you could also say, "People often confuse friendship and love." But your sentence has a more concrete meaning.

I would say 'people often confuse friendship with love'. Here is something that I agree to, friendship blooms by natural impulsion that may or may not necessarily end up in love. But love is nothing but two souls dissolved into each other and becoming one.

Both are structurally correct.

However, in the first sentence, the concentration would be on the definition of 'love' as compared with 'friendship'.

It would be the reverse in the second, which is how you answer the question.

You can cover both options like this:

People often confuse love and friendship.