Hi mate,
It does through the Smart trainer. I use Wahoo Kickr Core. There is a build in power meter, cadance meter etc. in that. When it goes up hill it increases the resistance on the trainer to simulate the incline. This is quite realistic to be honest. You would be surprised how accurate it is :)
RE: Zwift - Orange Unicorn Lite on The Muckle Yin in Makuri Islands