Children depend on their parents for food, clothing, and shelter.

"It’s" is a contraction for "it is" or "it has" and does not fit grammatically in the context of the sentence. The sentence requires a preposition to indicate the relationship between children and their dependence on their parents, making "it's" an incorrect choice.

"Clothing" is a noun that refers to garments or apparel, but it does not serve as a preposition. In the sentence, a preposition is necessary to connect "depend" with the subject "children" and their source of support, therefore making "clothing" an unsuitable option.

"That" is a demonstrative pronoun or conjunction used to introduce a clause or specify something, but it does not function as a preposition. The sentence structure requires a preposition to properly express the dependency relationship, rendering "that" inappropriate in this context.