Sentence:  In show business parlance, Miss Hudson knows how to "<WSD>work the room</WSD>." Her comic turns are as rooted in vaudeville as her high-style wit is straight out of the smart supper club circuit. 
Meaning of the word marked with <WSD> tags:  To interact with one's audience, taking cues from its reactions and adapting one's performance or words to elicit the audience's attention and enthusiasm.