the answer is 2. because it should be I am wearing a sweater knitted by my grandmother.
Can You post answer choices?
This is a B) correctly placed participial phrase.
If it weren't, that would mean the sentence would go like this: The audience playing an electric guitar listened to the musician, and then <em>playing an electric guitar </em>would refer to the audience, and not the musician.
Answer:
To participate in a conversation about something in order to find a solution or express your own points of view.