The piece of written work that starts with the line "In a hole in the ground there lived a hobbit." is "The Hobbit" by J.R.R. Tolkien. Published in 1937, "The Hobbit" is a fantasy novel that serves as a prequel to Tolkien's later work, "The Lord of the Rings." It introduces readers to the world of Middle-earth and follows the adventures of Bilbo Baggins, a hobbit who is unexpectedly swept into a quest to reclaim a treasure guarded by the dragon Smaug.