Q: "A group of people gather and holding different types of flags." Does this mean that "They are holding flags."?
A: yes

Q: "A man in an orange shirt stands on a latter and paints a wall blue." Does this mean that "A man is painting a kitchen wall blue while on a ladder."?
A: it is not possible to tell

Q: "A group of people are standing around a water fountain getting wet." Does this mean that "The people were dancing around the water fountain."?
A: it is not possible to tell

Q: "A man is washing a car with soapy water." Does this mean that "The man washes his car in his driveway."?
A:
it is not possible to tell