A is wrong because "Wendys'" should be "Wendy's", because the possessive isn't plural.
C is wrong because "Its" should be "It's", because "It's" is a contraction for "It is."
D is wrong because the apostrophe should be after "judges", not "statements." Statements do not own anything, but the judges own the statements.
B is the correct answer.
<span>A prepositional phrase is a series of words consisting of a preposition and its object. For a prepositional phrase to functioin as an adjective, it must describe something along with specify its position. The option that does this is B. We bought cookies in the red package. </span>