Difference between its and it's

“It’s” is a contraction, standing for “it is” or “it has.” For example,

  • It’s a great day outside.
  • It’s been a long time.
 

“Its” is the possessive form of the pronoun it. For example,

  • The dog ate its food.
  • The lake is beautiful in its own unique way.

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The word is a contraction in this sentence, so the correct form is it's. The phrase "it is" doesn't make sense in this sentence, which needs a possessive form: its. The sentence begins with a contraction of "it has" (it's) and then needs a possessive form (its).  
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