Asking for agreement, understanding, belief. Answered with itself. Often used in italian mafia-type settings to emphasize understanding.
Frank: "If you dont shutup, im going to bust your frickin head open with a baseball bat, capice?!"
This is a common misspelling of 'capisce'. This is a slang word in American English borrowed from the Italian. It translates to 'to understand', as in 'Do you understand?' or 'Is that clear?'.
People who don't do what they are asked by the don are no friends of the family, capice (sp.: capisce)?