We can do with it (7)

I believe the answer is:

ability

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'it' is the definition.
The definition suggests a singular noun which matches the answer.

I don't understand how the remainder of the clue works.

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(Other definitions for ability that I've seen before include "Capability, competence" , "Gift" , "Strength" , "Power or skill to do" , "Quality of being capable of doing something" .)

I've seen this clue in The Telegraph and The Globe and Mail.

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