Final answer:
Indiana participated in the Underground Railroad because of its location in the North but near the South, which attracted runaway slaves.
Step-by-step explanation:
The state of Indiana participated in the Underground Railroad mainly due to its location in the North but near the South, which attracted runaway slaves (Option B). The state government did not actively support or fund the Underground Railroad, and it did not have policies that made slaves seek other routes to freedom (Options A and C). However, it is worth noting that the state government did not actively protect runaway slaves from recapture (Option D).