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First, you find the simple subject and simple predicate.
If the '-ing' form of the verb is not part of the simple predicate, then determine how it is used in the sentence. If it's in a noun position, then it's a gerund. If it is used as an adjective, then it will be a participle.
Answer:
Research, however, suggests that reading fiction may provide far more important benefits than nonfiction. For example, reading fiction predicts increased social acuity and a sharper ability to comprehend other people's motivations.
Explanation: