I would say B for this. Hope it helps :)
The correct answer is the role of adjective. Both non-finite verbs can perform the role of adjective in a sentence. The following examples show this role:
Present participle as adjective, which can be recognized from its "-ing" ending:
Look at the reading boy.
Past participle as adjective, which are formed by adding "-ed" to the verb:
Look at the washed car.
Participles can function as adjectives when they end in -ing or -ed.
A participle that is ending in "ing" (present participle) is used for describing an object. Example: an interesting book. (Present participle: interesting).
When the participle functions as an adjectibe and ends in "ed" (past participle), it is used for talking about people. Example: The kid is bored. He is interested in video games. (Past participles: bored - interested).
Answer:
rise
Explanation:
Add in each one to the sentence,
"We watched the stream raise from the coffee."
"We watched the steam rise from the coffee."
Which ever sentence makes more sense is the one you should choose, in this case, it would be rise.