I like the C++ reference
"It" refers to Rock obviously. The issue is not about what "it" refers to, but about what "it" gains. As written, "it" is only gaining one ability. Look at the positioning of the quotation marks.
I'll substitute "Rock" for "it" and use two different types of quotation marks to highlight the difference.
It has "Equipped creature has "1, Sacrifice Rock: deal 2 damage to any target" and "Equip 1." "
Rock has <<Equipped creature has "1, Sacrifice Rock: deal 2 damage to any target" and "Equip 1." >>
Rock has << some text >>
Focus on what's inside the << >>.
<<Equipped creature has "1, Sacrifice Rock: deal 2 damage to any target" and "Equip 1" >>
<<Equipped creature has "something" and "something">>
Picture the Rock token. What text would be on it?
Rock
Artifact - Equipment
Equipped creature has "1, Sacrifice Rock: deal 2 damage to any target" and "Equip 1".
Rock gives the equipped creature 2 abilities.
It should say
Rock has <<Equipped creature has "1, Sacrifice Rock: deal 2 damage to any target">> and <<Equip 1>>.
That gives 2 separate abilities to Rock.
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