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The given sentence talks about a small box decorated having a statue of a laughing Buddha in it. The blank requires the -ing form of a verb to convey the action performed on the object ('statue of laughing Buddha'). Among the given options, the pair of 'containing' and 'carrying' fits in the blank appropriately. 'Containing' means having or holding something within. 'Carrying' means transporting from one place to another. Both appropriately describe the constituents of the box. Hence, (d) is the correct answer. The rest of the options are negated because they don't fit in contextually.
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