I can’t answer because I can’t see the story like this tho
The right answer for the question that is being asked and shown above is that: "A. Resting on the sea bottom, the old trunk held many coins." the <span>sentence that is the italicized words a dangling modifier is this </span><span>A. Resting on the sea bottom, the old trunk held many coins.</span>
I think the answer is B. Because there is a period before the sentence: "The cookies were not eaten by the children" choice B contains the misplaced modifier. Unless that was a typo.
Hope this helps!:)