"She is far away, but I still love her."
Translation:Ela está longe, mas eu ainda a amo.
Well, I don't know if you have already got it but I'll try to help. I love icecream = "I" is the subject, "love" is the verb and "icecream" is the object (in this case a direct object). I live in Brazil = "I" is the subject, "live" is the verb, "in" is the preposition and "Brazil" is the object (in this case, an indirect object). You can identify an indirect object by the preposition between the verb and the object.
In "I give the box," "box" is the direct object (of the verb). In "I give her the box," "her" is the indirect object (of the verb). Direct objects are things acted upon. Indirect objects "receive" the action. In your example, "Brazil" is the object of the preposition, not of the verb.
In Portuguese saying "A Espanha está na Europa" sounds weird. The most usual would be to use the verb "ficar". I believe one could say "A Espanha é na Europa" with no problems, specially in a question. You should be careful with the many differences between the two languages.
I believe you will never use "ser" when talking about someone being wherever, even though it's a permanent situation. You have to realize that is not about the concrete fact, but the possibilities (in theory, there is always the possibility of moving to somewhere else). Besides that, there is the usage aspect. For example, you say "Ela está morta" (She is dead). It's not grammatically incorrect to say "Ela é morta", but it is highly unused and many people would take it as incorrect. So, try to focus on the usage if the permanent/temporary aspect doesn't help.
When you are talking about a person and the place he or she is you must use "estar". And yes, babies won't be babies forever but you must use "ser". There's a difference between "Ela é velha" e "Ela está velha". The first is about age and the last is about appearance. Talking about Inglaterra, in the right context you can say "Ela é longe mas eu a amo" mas there are two points to consider: a) it's also common to use "ficar" in that sense and b) can you use "she" for a country in English? I would have used "it" instead. In this topic they gave us the sentence in English to be translated and I was thinking of a person since it says "she". I'm sorry if I got it wrong.