Position the basket by one of the loops.
Zoom in and erase a tiny part of the handle
as in the previous steps.

Apply the same light shadow.

Merge Visible layers.
And here you go.

Save as a gif.
ALWAYS use the Wizard.

Click next on all the windows to accept the default settings
except on this one. Change to NO.

At the last window, wait until you see the size appear.
Or you get an error.  Finish.

Send it in!