Gods can't die while human can.
I believe the correct answer is B. The modifier "wearing a blue dress" is placed far from the noun which is supposed to modify - Stacey. Such as it is, it could easily be attributed to another noun, the stage. It would seem that the stage was wearing a blue dress, rather than Stacey. This is easily fixable with a comma between "stage" and "wearing".
The C and D sentences are also a little bit awkward, but they don't contain a misplaced modifier.
Alleged madness
The passage from Act 3 Scene 4 has the recurring idea of alleged madness. First, Olivia, Maria, Sir Toby and Fabian were all making Malvolio seem crazy and devil-possessed with his snobbery and arrogance. Then, the passage shows Olivia desperately in love, thinking she is like Malvolio--going mad. Lastly, Antonio's friendship to Sebastian ( who was actually Cesario) was introduced. Antonio was made to seem mad from his misdirected loyalty.
Religious councils were formed to try to settle the issue.
My mother is not in the room at the moment.
We are doing our homework.
My sister isn't using her crayons right now.
We aren't going to go play tennis today.
