What is the capital city of Italy?

Rome is the capital city of Italy, distinguished as the country's central hub for government, culture, and history. It has great significance in Italian identity and is often referred to as the "Eternal City" due to its long-standing historical legacy. Rome is known for its rich cultural heritage, ancient structures like the Colosseum and the Roman Forum, and as the seat of the Roman Catholic Church, housing the Vatican City.

The other choices represent the capitals of different countries: Lisbon is the capital of Portugal, Madrid is the capital of Spain, and Paris is the capital of France. While each of these cities is significant in its own right, they do not pertain to Italy's capital. Therefore, Rome is uniquely positioned as the correct answer in this context.