Which best describes the underlined phrase in the sentence below? living in salt lake city

The underlined phrase "living in Salt Lake City" in the sentence does not exist.

living in salt lake city was laetitias dream

The underlined phrase "living in Salt Lake City" is a noun phrase that functions as the subject of the sentence.

is it gerund, participial or infinitave pharseing

The underlined phrase "living in Salt Lake City" is a gerund phrase. It is a noun phrase consisting of the gerund "living" (the -ing form of the verb "live") and the prepositional phrase "in Salt Lake City". Gerund phrases function as nouns in a sentence.