The participle phrase in the above sentence is 'flickering on the table.'
The participle phrase starts either with the present (dependably ending with -ing) or past (dependably ending with -ed)
The participle phrase includes the modifiers or objects to complete the thought of the sentence. For instance, in the above sentence 'flickering' is in present and modifies the word 'The candle'. Therefore, the participle phrase acts as an adjective always, providing a description of the sentence.
Therefore, the correct option is the participial phrase flickering on the table modifies candle.