This is done in the 100 Acre Wood world.
From Rabbit's house follow the trail behind him and you'll come to a honey tree with some balloons tied to a log. Just interact with the balloons to start the mini game.
The game is simple enough, it just requires timing and patience.
Tapping or holding
will lift you up and you steer with the left analog. The camera follows you automatically so don't worry about that.
Your best tactic is to tap
slowly and just casually make your way up. There's no timer on this.
Follow the coin trails up the tree while avoiding bees and hitting any branches; hitting either obstacle results in popping a balloon.
Pop all 3 and it's game over however there are replacement balloons around the tree as you ascend but you can only have up to 3 at a time.
In order to reach 500 points you must collect ALL the coins on the way up and the big coin at the end; ascending too high from the large coin ends the run so make sure you have them all first.