The correct option is B lying on my table
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). When the sentence is in passive voice, the verb is changed to past participle (verb + ed - generally).
Option B is correct as it is an adjective phrase. The relative pronoun 'that' is removed and the verb form of 'to be', "is" is also removed ('lying' is already a present participle).
Option A 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 adverb clause of time, it is not reduced to a phrase.
Option D is incorrect because the answer lies in B.