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The opening act of the Shakespearean play began at sundown at Zilker hillside theater.

This would be the correct punctuation of the above sentence. 

The sentence that contains the correct capitalization is "The opening act of the Shakespearean play began at sundown at Zilker Hillside Theater."

Capitalization refers to the writing of a word with its first letter in uppercase and the remaining letters in lowercase.

The first word of a document and the first word after a period must be capitalized as well as proper nouns—and adjectives derived from proper nouns.

The primary purpose of capitals is to focus attention on particular elements within any group of people, places, or things.

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