Sentence: The sun was covered by a thick cloud all morning, but luckily, by the time the picnic started, it was out.
 Reason: The 'it' refers to the sun because exactly what nouns we are replacing (Pronoun Reference), and that we use the ... will be replaced by a plural pronoun such as they. ... please refer to the subject-verb agreement handout for more information ... 
 Question: Is the above reasoning correct or wrong? 