Q: "A smaller dog sniffs a larger dog in the hills." Does this mean that "A smaller dog is smelling a big dog."?
A: yes

Q: "Three people standing on boardwalk looking at buildings across the water." Does this mean that "the people are on the water"?
A: no

Q: "A man and a woman dressed in white are practicing fire dancing." Does this mean that "A couple is preparing for their wedding dance."?
A: it is not possible to tell

Q: "Seven kids are playing, 6 on the rope climber and 1 on the big blue and silver play structure." Does this mean that "6 kids are playing together."?
A:
yes