It's your fault. For using yucky old jQuery.
When you use
jQuery create a textNode and appends it to what you selected. And text nodes indeed treat *ALL* characters as just text.
So try using
That is, use the .html() method instead of the .text() method.
If you are going to use jQuery, you need to learn what each of its functions actually do.
In vanilla code, you'd just do:
var foto = fotos[thepic];
document.getElementById("tit").innerHTML = foto.title;
document.getElementById("it").innerHTML = foto.item;
document.getElementById("capt").innerHTML = foto.caption;
Okay, okay, I know you used jQuery to get the animated effect. But again, if you are going to use it, you need to learn what its functions actually do.