Italia is Italy in Italian.

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Note added at 2 hrs (2011-04-10 14:57:39 GMT)
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During the Republic and the first centuries of the empire, Italia (which extended at the beginning from Calabria to Rubicon later from Calabria to Alps) was not a province, but rather the territory of the city of Rome, thus having a special status: for example, military commanders were not allowed to bring their armies within Italia, and Julius Caesar passing the Rubicon with his legions marked the start of the civil war.

The name Italia covered a portion of Italy that changed through time. According to Strabo (Geographia, v 1), at the beginning the name indicated the land between the strait of Messina and the line connecting the gulf of Salerno and gulf of Taranto; later Italia was extended to include the whole Italian peninsula, as well as the Istrian town of Colonia Pietas Iulia (Pola); finally, Julius Caesar gave Roman citizenship to the people of the Gallia Transpadana— that part of Cisalpine Gaul that lay "beyond the Po"—, thus extending Italia up to the Alps.

With the end of the Social War (91–88 BC), Rome allowed the Italian allies to enter with full rights in the Roman society, giving the Roman citizenship to all the Italic peoples.
http://en.wikipedia.org/wiki/Italia_(Roman_Empire)

I'd translate it as منطقة إيطاليا


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Note added at 4 hrs (2011-04-10 16:52:06 GMT)
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Italia is a certain territory in the present Italy, it is neithre Rome which was but a principality, nor the Roman Empire which comprised entire countries. So you can just call it by its name, and stress the fact that it is not Italy, the present day nation that you're talking about, but a certain territory that historically was designated by this name.