Answer:
D). with newly applied racing stripes.
Step-by-step explanation:
The prepositional phrase is characterized as the phrase beginning with a preposition followed by its object or complement along with any/or modifier of the object. Such phrases are primarily employed as an adjunct or modifier in the sentence to add details about a noun or verb.
In the given sentence, the phrase 'with newly applied racing stripes' is the prepositional phrase that modifies the noun and provides details about the car that has been stolen i.e. 'the car having newly applied racing stripes.' Thus, option D is the correct answer as the other options do not denote a prepositional phrase at all.