Where's the baby? The nurse is putting him/her to bed.

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It's great. Thank you.

*THAT’s great. You’re welcome.

That's great))

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You only use IT if I mention something first:
Uly: What do you think of my correction?
Zoya: It’s great

However, if you’re commenting on something without any prompt, you use THAT:
[Reading Uly’s letter written in Russian]
Zoya: That was very good! Did you write IT yourself?
Uly: IT was easy - Tatiana helped me write IT.

So the first time the letter is mentioned, it’s THAT, after that, we can call it IT.

Да, ты объяснял это уже, я помню, но путаюсь пока ещё.)

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