Just an experiment. Grammar

Lately I've gotten fed up with one little grammar mistake that I see over and over, and I just want to do a little experiment to see how many people know it's a mistake.

Choose the correct sentence:
I laughed when the dog chased it's tail.
Vote A
I laughed when the dog chased its tail.
Vote B
Select age and gender to cast your vote:
+1 y
I'm a linguistics major and see this mistake EVERYWHERE! Aghhh it bugs the hell out of me! On Miley Cyrus's new CD (NOT that I bought it - I just saw it on iTunes), she did a cover of "Every Rose Has Its Thorn" but used "It's" in the title. RAGE.
Just an experiment. Grammar
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