1. The sentence describes a dress with two adjectives: one describing its material/origin and 'blue' describing its color.
2. 'Wooden' is an adjective that can describe material, but it doesn't fit with a dress.
3. 'Nice' is a general adjective of opinion that can precede color and material.
4. 'Italian' can describe the origin or style of the dress. 'Italian blue dress' is a common construction.