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Q. Because its military is larger and more technologically

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Because its military is larger and more technologically sophisticated than Japan, the United States shoulders much
of the burden for patrolling and protecting the shipping lanes of the West Pacific.

(A) its military is larger and more technologically sophisticated than Japan
(B) their military is larger and more technologically sophisticated than Japan
(C) their military is larger and more technologically sophisticated than that of Japan
(D) its military is larger and more technologically sophisticated than Japan’s
(E) its military has been larger and more technologically sophisticated than those of Japan

I rejected all the its choices because its refers to it's and does not have any antecedent because as per my knowledge possessive pronouns only refer to possessive nouns.

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