The underlined group of words that is a participial phrase is:
O living in organized cities
Explanation:
One can recognize a participial phrase in a sentence because it looks like a verb, but it actually functions as an adjective. Its purpose is to modify a noun in the same sentence. For example, "living in organized cities" is a participial phrase that spices up or further describes "the people of this area." Phrases like this modify a noun and provide added description about the action of the noun or its description.
