The word "fu" can be loosely translated as "deceased". In this case, "Sabbatino di Iacovo fu Antonio" means "Sabatino di Iacovo, son of the late Antonio" and "Angela di Pinto fu Giuseppe" means "Angela di Pinto, daughter of the late Giuseppe".
This birth record states that your GGF Luigi di Iacovo was the son of Sabatino di Iacovo, age 40, peasant farmer, and his wife Angela di Pinto, also a peasant farmer. Sabatino was the son of the late Antonio and Angela was the daughter of the late Giuseppe. Hence, Sabatino di Iacovo and Angela di Pinto are your Great Great Grandparents (2GGP). Antonio di Iacovo is your Great Great Great Grandfather (3GGF). Giuseppe di Pinto is also your 3GGF.