その is a demonstrative adjective meaning "that". It is placed directly before a noun to modify it, referring to something that is near the listener (or psychologically closer to the listener than to the speaker). It belongs to the こそあど (ko-so-a-do) system of demonstratives in Japanese.
When something is physically closer to the person you are speaking to, use その to point it out.
その is also common to refer back to something that has already been mentioned in conversation or is part of shared knowledge between the speaker and listener.
その must always be followed by a noun – it is a modifier (連体詞). In contrast, それ stands alone as a pronoun meaning "that (thing)".