So I need some advice what hardware do I need
An Arduino, an LED, a resistor, and a USB cable.
Don't worry about the wireless part until the wired way works.
Then, you'll need to tell us a lot more about range, data volumes and frequency, and loss-tolerance. And budget.
How do I do this and is it even possible.
It is possible. What do you need help with? The Arduino simply reads serial data, and does something based on what it reads. Only you know what you are sending it (or are planning to send it). Only you know how fast, and for how long, the LED should blink.