Translation:How does that affect students and teachers?
Since the Spanish sentence has "eso", it needs to have "that" in the translation. If "eso" was absent, you would translate using "it" (and "that" would then be wrong instead).
"How does it..." and "how does that..." aren't the same in English. When having a conversation, they ('it' and 'that') would be referring to different ideas or things.