Translation:We will go to France or Italy.
还是 is for questions, 或者 is for statements.
我们会去法国还是意大利？= Will we go to France or Italy?
Both 还是 (háishì) and 或者 (huòzhě) mean "or" and are used to present a choice. However, 还是 is normally used when asking a question, and 或者 is mostly for declarative sentences.
The three are rather similar and can sometimes be used interchangeably, other times only having one (or two) correct and/or idiomatic "answer". （There's a Venn diagram here explaining this: https://resources.allsetlearning.com/chinese/grammar/Comparing_%22hui%22_%22neng%22_%22keyi%22） It's difficult to explain due to the many situations in which they can be used. For this sentence:
可以 - can
会 - will (in the sense of future action)
能 - able to
Further resource: http://www.speakmandarin.com/grammar_r773.html where there is a nifty table. （There‘s even an exercise below, and my not-guaranteed-correct answer would be 1A(only acceptable answer=^) 2A>B(since both are acceptable, but A is the better answer, and for the rest only the best answer is stated) 3C 4B 5A^ 6A^ 7A^）
There's a big difference for the Chinese. 还是 : implies only one of the given options will be selected. This is why in questions, you must always use 还是 或者 : is used when listing all possible choices that haven't been excluded. This is why in decelerative sentences you should use 或者.
- Do you want coffee 还是 tea?
- She will either go America 或者 France.
Pro-tip: 还是 although used in direct question, may also be used in indirect question, i.e., all direct and indirect questions use 还是
Do you know, whether she ordered the tea 还是 coffee?
Furthermore, if you make a decelerative sentence, to which you want a reponse, use 还是:
I don't know, if this book is mine 还是 his. (clearly not a question, but it conjures a response).