The correct option is A living in glass houses
An adjective clause is a group of words that contain a subject and a
verb, and it functions as an adjective that modifies a noun or a
pronoun. Adjective clauses usually begin with relative pronouns such as
who, whom, whose or a relative adverb like when, where and so on.
An adjective phrase is a group of words (lacking a subject and a verb)
that performs the function of an adjective, i.e., it modifies a noun.
When
an adjective clause is reduced to a phrase, the relative pronoun is
removed, because it functions as the subject; and the verb is changed to
a present participle (verb + ing) or left out. When the sentence is in passive
voice, the verb is changed to past participle (verb + ed - generally).
Option A is correct as it is an adjective phrase. The relative pronoun 'who'
is removed and the verb "live" is changed to the present participle "living".
Option B is incorrect because the words form a clause; also, it is different from the meaning in the underlined clause.
Option C is incorrect because it is an adjective phrase that is different in meaning from the original.
Option D is incorrect because the answer lies in A.