Which sentence uses 'its' or 'it's' correctly?

Answer and explanation

Correct answer: A. The department has released its annual report.

'Its' is the possessive; 'it's' is a contraction.
Answer: The department has released its annual report.
Why not the others: The department has released it's annual report.: 'it's' means 'it is' or 'it has'. Its a long report.: it needs an apostrophe: it's. The report is released by it's department.: the possessive has no apostrophe.

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