please explain me C part

Dear student, 

In this question, you have to tell whether the highlighted words are performing the function of verb or adjective in the given distance.
For example, in the first sentence 
1. The dog lay panting in the shade -  panting is an adjective therefore A
2. The dog was lying in the shade- lying is a verb therefore V


Hope this information clears your doubts.
Regards


 

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