What is the grammatically correct sentence?
1. That's nice of you to say so!
2. It's nice of you to say so!
I've come across 1 many times, but I feel it seems not to be grammatically correct, strictly speaking as "that" cannot be used as a dummy pronoun, so it should be written as 2 as "it" can work as a dummy pronoun referring to "to say so". If you think of 1 as natural, could you tell me why?
1. That's nice of you to say so!
2. It's nice of you to say so!
I've come across 1 many times, but I feel it seems not to be grammatically correct, strictly speaking as "that" cannot be used as a dummy pronoun, so it should be written as 2 as "it" can work as a dummy pronoun referring to "to say so". If you think of 1 as natural, could you tell me why?