From Brazil to Peru the number of amazon birds in South America is large and varied.

Which capitalized word is used as an adjective?

None. The capitalized words are all nouns.

However, Amazon is used as a proper adjective here and should be capitalized.

The only adjective is Amazon and it's a proper adjective.

The capitalized word "South America" is used as an adjective in the sentence.

In the sentence you provided, the capitalized word "South America" is used as an adjective. It describes the type of birds, specifically those found in the Amazon region of South America.

To identify an adjective in a sentence, you need to look for words that describe or modify nouns. Adjectives can describe qualities, quantities, sizes, colors, and more. In this case, "South America" is describing the location or origin of the birds, indicating that they are found in the South American region.