The correct answers are It's obvious that the robot dog lost its favorite titanium bone. and The company announced that it's recalling the model because of its faulty tail.

It's is a contraction for "it is" or "it has."

Its is a possessive word meaning "belonging to it" (just like "his" or "hers").

Native speakers often add an apostrophe to "its" by mistake, forgetting that possessive pronouns (like his, hers, ours, yours, its) never take an apostrophe!