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The capital city of Italy is Rome. This city holds great significance as the political and cultural heart of the country. Rome is not only the capital but also has a rich history that spans over two and a half thousand years, making it one of the oldest continuously inhabited cities in the world. It is the seat of the Italian government, where the President and Parliament are located. Furthermore, Rome is renowned for its remarkable historical sites, including the Colosseum, the Vatican, and ancient ruins, which highlight its importance as a center of art, architecture, and religion throughout history.

Venice, while famous for its canals and unique architecture, is a city in its own right and does not serve as the capital. Florence is known for its pivotal role in the Renaissance and stunning artistic contributions, but it is not the capital either. Milan is a major financial and fashion hub in Italy, yet it also does not hold the status of the capital city. Thus, Rome's combination of historical, cultural, and political significance makes it the correct answer.