Which of the following words should be capitalized?

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The reason for capitalizing "England" is that it is a proper noun, specifically the name of a country. Proper nouns refer to specific entities, such as countries, cities, institutions, or individuals, and they are always capitalized in English. In this case, "England" represents a distinct geographical location and has significance as a national identity, making it necessary to use a capital letter.

On the contrary, the other words are either common nouns or not proper nouns. "State" can refer to a general region or a government entity and does not specify a particular state, which is why it is not capitalized. "Lake" is also a common noun when used generically, and unless it forms part of a proper noun (e.g., Lake Michigan), it does not require capitalization. Lastly, "land" in its general context describes an area or territory but is not a specific name and therefore remains lowercase.