Which sentence uses a participial phrase?

A) The fence, which was broken and dirty, looked terrible.
B) Shutting out their opponent, the other team celebrated in victory.
C) Swimming in the pool all day is my favorite way to spend the summer.
D) I am pretty tired and not interested in staying up too late tonight.

I am thinking it is b because "shutting out their opponent" has a verbal use, which describes the verb "celebrated" more thoroughly. And you can transform that participial phrase into a dependent clause.

If it isn't please explain why. Thank you!

Yes, you're right.

Here's a good place to look up grammatical terms when you want really good explanations and examples:
http://www.chompchomp.com/terms.htm

Yes! Thank you!

However ... it's modifying "team" not the verb.

You're welcome!

You are correct! Sentence B) "Shutting out their opponent, the other team celebrated in victory" uses a participial phrase. A participial phrase is a phrase that begins with a present or past participle (a verb form ending in -ing or -ed) and functions as an adjective. In this sentence, the participial phrase "Shutting out their opponent" describes the action of the subject "the other team" and provides additional information about how they celebrated. Your reasoning is also correct - you can transform the participial phrase into a dependent clause, for example: "While shutting out their opponent, the other team celebrated in victory." Well done!