What is the correct capitalization in the quote from The Alchemist?

The correct choice for capitalization is the one that includes "Writes, "It's." In this instance, the use of "It's" signifies a contraction for "it is," which is appropriate in many contexts, especially when directly quoting dialogue or text where this contraction appears.

Proper punctuation is also observed here with a comma preceding the quotation, which indicates a natural pause in the sentence and helps to smoothly integrate the quoted material into the surrounding text. Using capital letters at the beginning of a quote after a comma is the standard convention if the quoted material consists of a complete sentence.

This combination of correct capitalization, punctuation, and representation of the contraction demonstrates an adherence to standard writing conventions, making this choice the most accurate representation of how the quote should appear.