Think of it like this:
* Indo-European is a huge family of languages, like a giant tree.
* Italic is a branch of that tree, containing languages like Latin, Oscan, and Umbrian.
* Proto-Italic is the "root" of the Italic branch, the language from which all the other Italic languages evolved.
So, while we can't directly trace Latin back to Proto-Italic (since it's a reconstructed language), it's the closest we can get to its ancestor.