In the book Chii reads, what does "that" refer to? (Chobits)?

I'm watching Chobits and I'm on episode 11. When Chii reads the picture book about the city with no people, the character keeps saying that all of the people have "that" or are with "that".

What does "that" refer to? Is it a feeling or an object or am I not even close?

It refers to emotions and love.

[minor spoiler following, dont read if you don't want]

It is supposed to illustrate to Chii the inherent danger of the Chobits project.

"that" refers to the person only for you..