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The Vatican is a sovereign nation

Vatican City is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome. 

It has an area of approximately 110 acres, and a population of around 840. This makes Vatican City the smallest internationally recognized independent state in the world by both area and population.

Vatican City is an ecclesiastical state, ruled by the Bishop of Rome—the Pope. 

The highest state functionaries are all Catholic clergymen of various national origins. 

It is the sovereign territory of the Holy See and the location of the Pope's residence, referred to as the Apostolic Palace.