It's

Yes, the word is supposed to be "It's."

I agree with those who said the apostrophe doesn't "read" quite right, but I think one of the bigger problems with this word is that the "S" is too big and overwhelming. It's what you see first, and I am inclined to think it needs to be significantly smaller. It's really a nice S, though, and I love the way the paisley print follows the shape of the letter.  Looks like this S is destined for the Misfits bin.

Yes, this is the beginning of a word quilt, and it is the first word in the quote. I think it needs to be a lot more assertive and unambiguous.  Let's face it, if you have to struggle to read/understand the first word of a sentence you might not continue reading.

I really want you to continue to read because the quote is something I tell my students all the time:

It's only fabric.

It isn't Gold!

Looking at the entire quote (instead of hearing it in my head), I can see there are a couple of other places I can use the lady as an "i". 

She could be more effective as the "i" in "fabric." Because the whole point of the phrase is to get my students to stop fetishizing their fabric and think if it as raw materials - material that needs to be USED to make a finished product.  Putting her in the word "fabric" might make viewers start thinking about how to use fabrics differently, and at least get them to actually USE what's in their stash.