English Experts please answer ..

Dear Student, 

The first expert is indeed correct on this occasion. 'Hearing' is a participle here.

Let us re-phrase the question to give you a clear picture :

The children, hearing the loud noise, rushed out of the auditorium. 
(So, hearing qualifies the noun children. So, 'hearing' is an adjective. )


The difference between participle and gerund is that participle functions as an adjective whereas gerund functions as a noun.
Eg: Hearing is a key component of communication.
In this example, 'hearing' is the subject and functions as a noun. So, it is a gerund for the example.

I apologise for the earlier error. It is hoped that the answer is completely clear to you now. Please get back to us in case of any other doubt. 

Regards,

 

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Hearing is a gerund .
This is correct because today my english teacher taught about gerunds
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therefore
The word "hearing" is a gerund
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