The answer to your question would be that the sentence in which the underlined word is a gerund is the following one: "Breathing" is a basic function controlled by the brain. That is, the correct option would be B.
Gerunds are words that are formed with verbs but act as nouns. Therefore, they can function as subjects, subject complements, or objects in the sentence. In the sentence in question, the gerund "breathing" is functioning as the subject.