It neuter because it's does not refer to a living thing.
The answer would be 'A', 'To do yoga, I need a shirt, that is loose and comfortable.'
Why: There is an unneeded comma after the word 'shirt'.
Answer: B. She was willing to lose things for what she believed was right.
Explanation:
B, based on the section in paragraph 3 that states she was sad for losing her job, but decided to keep doing what she felt was right. She didn't give up.