On the way home, Mom smiles and says, "Good job, Hojin. The concert is over. Move and laugh now. It's okay."
In this context, in the last sentence, 'What does 'It' refer to? Is 'It' a dummy subject which doesn't represent at all?
- Move and laugh now. It's okay.
- Moving and laughing now is okay.
[Doesn't "It" refer to 'Moving and laughing now' as in #2?]