Q: "A small black and white dog on a leash stands next to a gray and white cat on the sidewalk." Does this mean that "The gray dog is cuddling inside with the black cat."?
A: no

Q: "A group of people are sitting below a concrete structure that overlooks a staircase." Does this mean that "A group of people sit below a structure."?
A: yes

Q: "A small child stepping away from a crowd-lined street in front of a band marching in a parade." Does this mean that "There is a kid and a parade."?
A: yes

Q: "old people walking through the woods." Does this mean that "Old people searching for fairies."?
A:
it is not possible to tell