What is a remote reference pronoun?

A remote reference pronoun is a pronoun that takes the place of an antecedent that is mentioned far before the pronoun. It may be difficult to realize what the antecedent for the pronoun is, making the sentence using the pronoun unclear.

Example: When I explain it, it does sound confusing.

What does 'it' represent in the example? (answer: remote reference pronoun from the first sentence)