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Proper nouns are always capitalized. They name specific, individual persons, places, or things. Here are a few examples:
Wally World Idaho Gem Peak Green Valley South America Ms. Morris
He said that Sue would be back from Hawaii soon. Joe will meet you at Rupert's Market. Wanda will celebrate Flag Day in Nevada.
Homophones are two words which sound the same, but are spelled differently (and almost always also have different meanings). Here are some examples:
dear deer four fore for two too to hair hare pair pear their they're there I eye knew new red read lead led