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"Creating fear in us" is a gerund verbal phrase. Option A is correct.
A gerund phrase always begin with a gerund,(an ing word), and may include other modifiers and/or objects. Gerund phrases always function as nouns, so they will be subjects, subject complements, or objects in the sentence. So, to put it simply, a gerund is a noun formed with a verb ending in ing. In this particular case the gerung in the sentence is the verb "creating;"(create+ing).
