Answer:
2 (option B)
Explanation:
The pronoun it is usually used as 'replacement nouns' for when a sentence or paragraph is getting too redundant and when the same words/nouns have been used multiple times. Given the context clues of the sentence, there are two clear nouns in this sentence, car and tree. Seeing as these are the only two nouns that are in the sentence, it is only rational to think that these are the two things that the word it could refer to.
