Final answer:
The correct verb to fill in the blank is 'vivimos'.
Step-by-step explanation:
1. Mi familia y yo vivimos en Colorado.
In Spanish, the verb 'vivir' means 'to live'. When conjugating this verb in the present tense for the subject 'mi familia y yo' (my family and I), we use the form 'vivimos'.
Therefore, the correct sentence is: 'Mi familia y yo vivimos en Colorado.'
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