I don't know Portuguese. In Spanish, "este" and "ese" are exactly the same as the English "this" and "that," so probably Portuguese "este" and "esse" are, too. Can you explain the difference between "este" and "esse?" That is the difference between "this" and "that."
Like "this" and "that," "it" is a pronoun. A pronoun refers to a longer word or phrase. You can replace a pronoun with the word or phrase it stands for. Unlike "this" and "that," "it" does not have any feeling of distance. It is easiest to explain by comparing it to "he" or "she."
"Linda is at the computer. She is using Excel." We can rewrite the second sentence as "Linda is using Excel." "She" refers to "Linda."
"He" refers to a man (or a male child or a male animal). "She" refers to a woman (or female child or female animal). For everything else, we use "it." "It" can refer to real things, or ideas, or things we have just said.
The knife is on the table. It is sharp.
Brazil is a country. It is large.
Beethoven's Ninth Symphony is a piece of music. It is about an hour long.