I agree this task might be too difficult a step at this point. Designing the algorithm is certainly a huge step up from anything previous or after this lab.
Look here for some advice:
This was a step-by-step workshop in the previous curriculum. You might gain some insight by going through that: https://www.freecodecamp.org/learn/scientific-computing-with-python/learn-recursion-by-solving-the-tower-of-hanoi-puzzle/step-1