The sister
In Italian, 'La sorella' is used to refer to a female sibling. It is often used in familial contexts. Just like in English, it can be used in both singular and plural forms. For more than one sister, you would say 'Le sorelle'.
Marco's sister is very nice.
In this sentence, 'La sorella' is used in a descriptive way, indicating that the sister of Marco is a very pleasant person. Here, rather than 'La sorella' standing alone, it's connected to another individual through 'di Marco'.
The sister prepared coffee for me.
In this instance, 'La sorella' is the subject who performs the action of preparing coffee. The coffee was made specifically for the speaker as indicated by 'mi ha', which translates to 'for me' in English.
I gave the gift to the sister.
This sentence is using 'La sorella' as an indirect object, the recipient of the action. The action, in this case, is giving a gift. The gift is given to the sister by the speaker, indicated by 'Ho', which translates to 'I have' in English.