What role did the northern capital play in the development of the New South?How did the rise of industry affect the lives of rural Southerners?...

I'm assuming that you're talking about the time after Reconstruction here.

During this time, the great majority of money invested in Southern industry came from the North.  This is not surprising given how much more industrial the North had been and how it had not been devastated by the war.

In a lot of ways, the attempt to industrialized didn't change the lives of rural people.  In 1900, two-thirds of all Southerners lived by farming, just as they had in 1870 (Henretta 2000, p. 555).

For the most part, African-Americans were (when employed in industry) kept to the more menial and low-paying jobs.  Industrialization wouldn't really help them until they moved North during and after WWI.

Message me if you have more questions about what I've said here.