From the Super Mario Wiki, the Mario encyclopedia
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The person is controlling Wario and is trying to view something with a magnifying glass. However it is fuzzy so the player must either move the Wii Remote back or forward to get it into focus. If succeeded, the player may get a view of an UFO, some ice cream, a (very man like) woman with a mustache, two donuts, or even the player's own Mii.
There are almost no differences between the levels, and it may be that they are the same difficulty.