The answer is definitely b
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.
I believe that the general notation for your subtopics in an outline is B. capital letters.
Roman letters are used for topics, capital letters for subtopics, and the rest for supporting points.
<span>When the boys started hurting each other. They were acting like uncivilized, brutal, cruel, barbaric animals. </span>