The answer is option 1: Containing strange and beautiful rock formations
A participle phrase begins with a present participle (with -ing) or a past participle, which can end with -ed or with an irregular form. It also contains objects and/or modifiers, and works as an adjective, since it modifies a noun or the subject of a sentence.
In the example sentence, the participial phrase consists of a present participle, "Contaning," and it modifies the subject, "Carlsbad Caverns National Park."
