Which sentence is correct regarding pronoun usage?

The sentence "The team celebrated its victory" is correct in terms of pronoun usage because it appropriately uses the singular possessive pronoun "its" to refer to "the team." In American English, collective nouns such as "team" are often treated as singular entities, which means that they take singular pronouns. This reflects the idea that the team acts as one unit when celebrating its victory.

In contrast, while other choices might seem acceptable in casual conversation, they can lead to ambiguity or are considered less formal. For example, using "their" in "Everyone should do their best" is often debated because "everyone" is a singular term. Similarly, "the jury gave their decision" treats "the jury" as a plural entity rather than singular, although it's commonly accepted in informal contexts. The phrasing "the children took their toys" is grammatically correct, but doesn't illustrate the precision of pronoun number agreement that choice B does.