Question

Fix the sentence by following the apostrophe rule.
The stores policy states that it will not accept refunds, even if its their fault.

A. The stores' policy states that it will not accept refunds, even if its their fault.

B. The store's policy states that it will not accept refunds, even if its their fault.

C. The store's policy states that it will not accept refunds, even if it's their fault.

D. The stores policy states that it will not accept refunds, even if it's their fault.

Answer 1

The answer is C. (store's & it's)

Answer 2

The correct answer as to which sentence follows the apostrophe rule is C. The store's policy states that it will not accept refunds, even if it's their fault.
Since we are talking about only one store, it has to be the store's. If there were more than one store, then the correct answer would be the stores'. Its is a possessive pronoun (the dog wagged its tail), and it's is short for it is.