1. They do a lot during the day and need the time to do it all.

2. They do a lot during the day and need the time to do them all.
---------------------
Which one is right? Is 'a lot' the object of the verb 'do'? Does 'it' refer to 'a lot' in Sentence 1?

#1 is correct. And the answer to both questions is 'yes.' =)

Both sentences can be grammatically correct, but each sentence conveys a slightly different meaning.

In Sentence 1, "a lot" is the object of the verb "do." It refers to a large amount or quantity of activities or tasks that the subject does during the day. In this sentence, "it" refers to "all" and not specifically to "a lot." So, "it" is referring to the collection of tasks or activities that need to be done throughout the day.

In Sentence 2, "them" is the object of the verb "do." It also refers to the activities or tasks that the subject does during the day. In this sentence, "them" directly corresponds to "a lot." So, "them" is referring to the specific activities or tasks that need to be done throughout the day.

To decide which sentence is correct for a specific context, consider the intended meaning. If you want to emphasize that there are many activities or tasks to be done, Sentence 1 would be more suitable. On the other hand, if you want to specifically refer to those activities or tasks, Sentence 2 would be more appropriate.