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Look at those people on TV. They are all red. Oh, my gosh!

- Are they hurt? No. They are having fun. It's a tomato festival.
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In this dialogue, what does 'It' refer to? Is it Situation it, which doesn't refer to any specific thing? Or else?

1 answer

It refers to what the people on TV, in red costumes, are doing. They are having a festival celebrating tomatoes. One could also write/say that the people on TV are having a festival, but "it" is the festival.
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