The pronoun 'it' replaces 'roses' in the sentence about Grandma loving smelling roses.
The pronoun 'it' correctly replaces the underlined word 'roses' in the sentence, 'Grandma loves smelling roses.'
Using 'it' as a pronoun helps avoid repetition and makes the sentence clearer.
Circling 'roses' in the completed sentence would show the noun the pronoun 'it' replaces.
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