Question

the two squawking parakeets on the porch fascinate rocky, the family cat, who spends hours there watching it.
change it to him.
change it to him or her.
no change is necessary.
change it to them.

Explanation:

The pronoun "it" refers to the plural noun phrase "two squawking parakeets," so a plural pronoun is needed. "Them" correctly matches the plural antecedent, while the other options use singular pronouns that do not agree, or incorrectly claim no change is needed.

Answer:

Change it to them.