In Venice, masquerading is not for spectators; everyone participates during Carnival. Which type of verbal is the underlined verb form? A. participle B. gerund C. auxiliary verb D. infinitive

Assuming the underlined verb form is masquerading, the correct answer is B. gerund.

Although gerunds and participles look the same (both have the form verb + - ing), the difference is in their function - participles are used as either adjectives or adverbs, whereas gerunds are used as nouns within a sentence.