This is almost exactly the same as the the beginning part of the third mission and is a Santa's Sleigh version of UFO Mayhem. You need to fly around in Santa's sleigh delivering presents to the people on the nice list and coal to those on the bad list. The only major difference between the activity and the mission is that houses on the good list only take one present, this makes it easier to keep a combo going so you can score better more easily. Like Genki holiday, you just need a bare minimum of a bronze on all instances in order to get the achievement.
The easy instance is in The Rosen Oaks Neighborhood, Medium in Brickston, and The hard one is in Yearwood.
Say you are working through the instances of Naughty and Nice, and you have 2/3 done, and before you start the 3rd one a friend joins your game and helps you finish the last one. He will get the achievement when you do, it will count as him completing all 3 instances since he joined your game and did the last one with you.