Answer:
O Hills.
Explanation:
Punctuation is the use of different signs and patterns of writing words or sentences. This includes capital letters, commas, full-stops, question marks, inverted commas, etc.
In the given sentence, the word "Hills" refers to the hilly area/ region of North Carolina. Since the word is used not as a particular name of a place or location, but in general terms, the use of the capital letter "H" in it is wrong.
The correct way to write the sentence will be-
<em>"Lorenzo lives in the hills of North Carolina."
</em>
Therefore, the mistake/ error is in "Hills".