Final answer:
The word modified is 'loudly', which is an adverb that describes how the action is performed.
Step-by-step explanation:
The word modified in the given sentence is 'loudly'.
'Loudly' is an adverb that modifies the verb 'laughing' and describes how the action is performed.
Example: She sings beautifully (adverb) in the choir.
Learn more about Adverbs