Answer:
1. Sino.
Explanation:
In this exercise you have to replace the beep for "pero" or "sino".
The statement 1 says "Ellos no viven en Lima sino en Arequipa. Why "sino" and not "pero"? Because "pero" is a conjunction used to connect two different ideas. One idea could be negative and the other positive. "Sino" is used to connect two ideas but in a different way.
In English we have "but" that means "sino" and "but".