I'm thinking C it fits the most.
Its - no apostrophe. As the apostrophe would make it a conjunction word of it and is
Which describes how the underlined pronoun is used in the sentence<span>? Who built that waterwheel in your backyard? A.object of a preposition</span>
Explanation:
it is important to connect to the next scenario or anything cause if you dont connect, it's like you'll miss some parts in it.
and if you miss them, you wont be able to understand clearly which keeps that story or whatever incomplete.
hope it helps :)