Its vs. it's

[Yurist2006]

English Error, Elementary Level

ESL/EFL Test #10 "Tell me about Yourself", question 3

Bristol is a very large city and it's famous not only for its university but also for it's connection with the world of hot air ballooning.

(a) is
(b) it's
(c) it's

English Error, Elementary Level

ESL/EFL Test #10 "Tell me about Yourself", answer 3

Bristol is a very large city and it's famous not only for its university but also for its connection with the world of hot air ballooning.

Correct entry: its
The error was: (c) it's
_________________________

Where is the mistake in this question?

[Yankee]

Hi

I've highlighted the error in red: