she
The Italian word 'lei' is used to refer to a female person or animal. It is the third person singular feminine pronoun and is used in the same way as 'she' in English.
She is my friend
This sentence translates directly to 'She is my friend' in English. The pronoun 'Lei' in Italian can be used to denote either 'she' or 'you' (formal). In this context, it is used to denote 'she'.
She is reading a book
The phrase can be directly translated to English as 'She is reading a book'. 'Lei' is used to represent 'she' in Italian. Moreover, the present tense verb form 'legge' is used to represent 'is reading'.
She lives in Italy
This sentence translates directly to 'She lives in Italy' in English. The noun 'Italia' refers to the country Italy. The verb 'vive' corresponds to 'lives' in English.