"My family lives in Rome."
Translation:Familia mea Romae habitat.
It should maybe be noted that "familia" more often refers to slaves or a family estate than to a family in any modern sense.
My question was unclear. I was asking about the exercises, not the language. After doing the exercises, the answer is a definitive no: they are inconsistent with the entries.
"in Rome" should have the "in" preposition. It should be "in Romā" (with the final "a" having the macron to show the ablative).