Answer: India

The first edition of the T20 World Cup was indeed played in 2007, and it was hosted by South Africa.

In the final of the tournament, India faced off against arch-rivals Pakistan. The match took place at the Wanderers Stadium in Johannesburg, and it was a thrilling encounter that went down to the wire.

In the end, India emerged as the champions of the first T20 World Cup, winning the match by just 5 runs. This victory was a historic moment for Indian cricket, as it was the first time that India had won a major international cricket tournament since the 1983 World Cup.