Q: "A lady is soldering some material, while a child looks on." Does this mean that "child is watching"?
A: yes

Q: "A baby girl in a white shirt and jeans sits on the grass by the street." Does this mean that "A baby sits on the shot grass."?
A: it is not possible to tell

Q: "Two people sit on a bench on a city street." Does this mean that "Two people are having a talk on a city bench."?
A: it is not possible to tell

Q: "A little girl in pink shorts runs on a lawn." Does this mean that "The little girl is on the grass."?
A:
yes