Vatican City is a country.

The answer 'True' is correct because Vatican City is recognized as an independent city-state and a sovereign country. It is the smallest internationally recognized independent state in the world, both in terms of area and population. It is an autonomous territory governed by the Pope, who is the head of the Catholic Church. Vatican City has its own government, legal system, and diplomatic relationships, making it a separate entity from Italy, although it is geographically surrounded by the city of Rome.