The word it in paragraph 1 refers to .

Read the following passage and mark the letter A, B, C or D on your answer sheet to indicate the correct answer to each of the questions from 44 to 50.
A school with no grades, no homework, no tests and no obligation to attend classes. That's the Brooklyn Free School, a learning institution that follows a 'free' education philosophy. Neither the school's head teacher nor the teaching staff, who are known as advisers, tell the students what to do. It's entirely up to them to choose what they learn and how they wish to learn it. This is based on the school's belief that learning only happens when it is self-directed and not imposed by others.
The school is only open to students from three to eighteen years of age. It encourages them to get involved in everything that concerns the school. In order to do so, students attend a Democratic Meeting where they have equal votes with the staff. This get-together is at the heart of the school's philosophy. Taking place every Wednesday, it gives staff and students an opportunity to be heard. Announcements are made, issues are raised and everyone cooperates for the well-being of the school. Attendance at the weekly meeting is one of the few school rules. Though some of the younger students don't pay much attention, preferring to read or draw instead, they must be present. A typical school day is different for every student. They can paint, play video games or work on laptops. Some prepare for the school's annual play by rehearsing or building stage sets. In the kitchen, others might be baking a cake or sorting rubbish for recycling. Traditional classroom lessons are also available if students wish to attend. These are best for students who prefer a structured day along with a weekly timetable. By offering these choices, the school accommodates all needs. Being part of a group of classes on a regular basis fits some students best, while doing individual projects is what suits others.
Parents hope the school will make their children independent thinkers and problem solvers. However, the school's system has its share of opponents. Their main criticism is that it does not, in fact, adequately prepare students for real life. This is due to the enormous freedom students have, which can lead to laziness and lack of discipline. Furthermore, it's believed that the school's academic preparation is inadequate. This seems to be supported by the fact that there are parents who have had to hire private tutors to help to make sure their children learn the basics.
Also, in its first academic year, a third of the original students left, as did the teachers. Since then, however, enrolments have increased and people are regaining confidence in the idea of self-regulated education and the school's mission.