She/it/they?

[Nudrat Nazeer]

Which one in blue is correct?
The Government is not paying attention to the poor people of the country and has not yet been able to remove the poverty from the country. She/it/they should should do more to...
( Someone told me to use "She" here but I don't understand why.)

[aachu]

Not a teacher

She is used in place of it to refer to certain inanimate things, such as ships, nations etc.

[emsr2d2]

Which one in blue is correct?
The Government is not paying attention to the poor people of the country and has not yet been able to remove the poverty from the country. She/it/they should should do more to...
( Someone told me to use "She" here but I don't understand why.)

I have no idea why anyone would say that. With the context you have given, the word in question can only be referring to "The Government". As explained in a previous post, Government can be taken as singular or plural so you could use either "it" or "they". Personally, I would use "They".

I have heard of many things being referred to as feminine (boats, aeroplanes, cars etc) but never the Government.

I would say that "she" is the only incorrect choice here.