It's is a contraction of “it is” and Its with no apostrophe is the possessive word
For example
It's (it is) going to be a rainy day!
and
I tried to arrange my shoes wrong and i realized that’s not its box.
"The books that come from the library look very interesting," observes Agatha.
Answer:
I say A but im not sure
Explanation:
I havent taken the test yet. So if there is another answer look at that instead