Which Translation is Correct?

We use the word "любить" = to love - only when we have strong feelings for someone, sometimes for something.

Yes, we can say: "Я люблю мороженое" = (lit.) I love ice-cream - for instance, but if we use the pronoun "it" instead of the noun, then it's better to say Мне нравится (это) = (lit.) I like it.

Also what does that "IT" means? In Russian we have genders even if it's an inanimate noun, e.g.:

I love this bag / I love/like it

Я люблю эту сумку / Мне она нравится - fem. noun => fem.pron.

In case with "Я люблю его":

его - for masculine nouns, because его is a masc.pron., which means "him", not "it".

I love this cute table / I love/like it

Я люблю этот милый столик / Мне он нравится or - Я его люблю - masc. noun => masc.pron.

"Я люблю это" I love this

"Я люблю его" I love it

hve you not got a dictionary or a grammar book? You do need them, they are essentiual tools for learning a language. Beware of machine translation - none of them are perfect.