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In order to correct the capitalization error in sentence 1, you should change “Department” to “department.” “Department” is not a proper noun and should not be capitalized unless it is used at the beginning of the sentence or used within the context of a title. “Avenues” as it is used in the sentence is not capitalized; however, if it were to be used as part of a street address, it would be. “Post Office” is to remain capitalized, as it is part of an official title and/or business name. You should not capitalize “rail transportation” unless it is used as part of a business’s name.