why is "it can be true" not correct?

—Do you believe what he says?
—Yes,it __________ be true.
A. can B. could
why is “A” not correct

‘could’ indicates possibility/probability, which is required in this context.

How about “can”?"Can’ indicates possibility/probability as well.

Not as much as ‘could’ does. ‘Can’ indicates ‘ability’, rather than ‘possibility’
‘It could be true’ - emphasises the opinion that it is possible, but not certain.
‘It can be true’ - emphasizes simply the general statement that it is possible… It is not right in this context.

In the sentence"Peter can come with us tonight, but he isn’t very sure yet.", should we use "could’ instead of “can”?

In the sentence"Peter can come with us tonight, but he isn’t very sure yet.", should we use "could’ instead of “can”?

That sentence requires ‘might be able to’.
Peter might be able to come with us tonight, but he isn’t sure yet.

  • It is a possibility, but he is not yet certain.

In this context, you would use ‘could’ or ‘can’ if there was a condition involved:
Peter could come with us tonight if we ask him in time. - it is possible that he will come if we ask him in time.
Peter can come with us tonight if we ask him in time. - it is definite he will come if we ask him in time.