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Review: Identifying Punctuation Errors, Answer 10.1

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Question:
"Take me with you," she said. "This town and it’s people are more than I can bear, but I know everything will be different in Toronto".
Answer:
The answer correct is not correct.
Explanation:
You should punctuate the sentence as follows:
Answer:
"Take me with you," she said. "This town and its people are more than I can bear, but I know everything will be different in Toronto."
The original sentence contained only two mistakes: (1) its is the possessive case and therefore is spelled without the apostrophe, and (2) the period belongs inside the closing quotation marks.