place markers で vs に

The correct answers are:

なら（ に ）行いきました。I went to Nara.
なら（ に ）しかが います。There are deer in Nara.
なら（ で ）しかを みました。I saw deer in Nara.

で and に are both used with a place so I have seen many students mix these two up.

で is a place of action marker while に is a place of existence marker or a destination marker.

にほんに いきます。I go to Japan. (Japan is the destination)
にほんには* しんかんせんが あります。Japan has shinkansen. (Japan is the place of shinkansen’s existence.)
にほんで しんかんせんに のります。I ride shinkansen in Japan. (Japan is the place of my action, riding the shinkansen.)

*は is added here because にほん has already been mentioned and “in Japan” has become a new topic. For the same reason, the middle sentence of the caption sounds more natural if I say ならには しかが います。

～にあります vs ～であります

Because I said に is for a place of existence, many students assume that the verb あります always go with に. Most of the time, that is correct, but:

教室きょうしつに黒板こくばんがあります。
There is a blackboard in the classroom.

教室きょうしつでパーティーがあります。
There is a party in the classroom.

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