Final answer:
Wordsworth's 'the world' refers to the materialistic preoccupation of society that alienates people from nature, which he elevates by capitalizing 'Nature' and 'Sea' to highlight their divine importance.
Step-by-step explanation:
When William Wordsworth writes "the world is too much with us" in his poem, he refers to the materialistic and industrial society that distances people from nature.
By "the world", Wordsworth signifies the man-made, mundane concerns of life - the pursuit of wealth and possessions, which, in his view, deadens the human spirit and our connection to the natural world.
This 'world' is in direct contrast to 'Nature', a term Wordsworth capitalizes to emphasize its significance and divinity. Wordsworth laments the lost connection to nature and portrays a yearning to return to a time when humanity was more attuned to its natural surroundings, even going as far as to say he would prefer to adopt an 'outworn' pagan faith to regain some sense of the divine in the natural world.
He distinguishes between the two by capitalizing 'Nature', 'Sea', and other elements of the natural world to elevate them, indicating their inherent sacredness and his deep respect for them. Wordsworth's perspective is that modern life has left humans 'out of tune' with the beauty and spirituality found in nature.