"He knows where it is."
Translation:Il sait où il est.
Of course it goes a little deeper than that. http://french.about.com/od/grammar/a/savoirconnaitre.htm
It accepts "Il sait où c'est" but saying that out loud to myself confuses me because sait & c'est sound so very similar...
That's a mistake in the database. Depending on the thing "it" represents, it must be translated as "il" or as "elle". So "il" should be accepted as well. From English you have no way of knowing what gender the thing would have in French.