In the following case which is correct:
1) The United Nations announced that Naomi Watts will be their new special envoy on HIV/AIDS.
2) The United Nations announced that Naomi Watts will be its new special envoy on HIV/AIDS.
According to my prof #2 is correct but it sounds incorrect to me. Someone care to explain? Apparently names of organizations, groups, and name brands, as well as titles of works (books, paintings, plays, musical compositions), are singular but it still sounds wrong to me...