The correct option is C with white laced sleeves
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 C is correct as it is a prepositional phrase that functions as an adjective. The relative pronoun 'which' is removed and the verb 'has' is also removed (instead of changing to a
participle).
(Prepositional phrases are of two kinds- adjective phrases and adverb phrases. The former modifies a noun and the latter modifies a verb, adjective or another adverb.)
Option A is incorrect because the words form a clause and not a phrase.
Option B is incorrect because it has changed in meaning from the underlined clause.
Option D is incorrect because the answer lies in C.