Which type of word refers to a specific person, place, or thing and begins with a capital letter?

The correct choice is the type of word known as a proper noun. Proper nouns are unique identifiers for specific people, places, organizations, or events. They are capitalized to signify their status as distinct entities; for example, "Sarah" identifies a specific individual, "Paris" refers to a specific city, and "Google" is the name of a particular company. This capitalization helps distinguish proper nouns from common nouns, which refer to general categories rather than specific instances.

Understanding this distinction is crucial in writing, as it not only clarifies meaning but also adheres to grammatical conventions. For instance, if you were to write, “I visited a city,” the term “city” is a common noun and does not specify which city, whereas saying, “I visited Paris” uses a proper noun that conveys much more specific information. Thus, recognizing proper nouns enhances both clarity and precision in communication.