"It is eating a dolphin."
Translation:Il mange un dauphin.
"Ça" should be a valid alternate response. Whoa! "Ça mange un dauphin!" Maybe it isn't covered in prior lessons and that's why the option isn't included?
No, yours would be saying something like "It is eats a dolphin", which doesn't work. :)
It could mean that, but most likely "il" is representing a masculine noun, such as "un requin" (a shark). In English we would use "it".