The answer would be A.
The question you have to ask is, is it possessive?
Yes it is possessive.
The wing is owned by the bird. Its wing was broken.
It's means it is or it has.
It's would not make sense in this case because you can not put it is or it has into this sentence.
Answer:
It compares the shabby blanket to the hug of an old friend, implying fhe blanket makes them feel safe and secure.
1.- Wow! That is a great idea. I'd love to join you, but I have a softball tournament that day.
2- Uncle Carl said, "we would like you to come to the reunion." but my mom told him that we would not be able to make it.
3- Because I had a dentist appointment at 1:30 pm, I had to leave school early.
4- The story, called out in the woods, is one of my favorites.