Milan is . . . . . . . . Italian City.

Answer: Option B

An indefinite article is used when we are talking generally about something whereas a definite article is used when we are talking about something specific.
The indefinite articles are 'a' and 'an'. An is used before a word starting with a vowel or vowel sound. A is used before a word starting with a consonant or consonant sound.
A definite article is an article that tells the uniqueness of something.
'The' is the only definite article.
The blank shall take 'an' as 'Italian City' is a noun complement.