Well, after calling some relatives that I didn't know of when I posted this, I found out that she was born in Caraglio, Cuneo. It makes sense because it was "Caraj" in the local dialect, and that kind of resembles what is written in her death certificate.

Hi, I'm trying to find where my great-great-grandfather was born in Italy, but I don't have any documents stating where he was from yet (they only say he was italian). All I have is my great-great-grandmother's death certificate from 1941, which says where she was born. It says the name of the town ...