finally. You can often recognize adverbs by the -ly ending.
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adverb
adverb phrase
It is a prepositional phrase functioning as an adverb. Hint: A word or phrase that answers the question 'Where?' is functioning as an adverb (I think).
adjective phrase
It could be either. This is determined by the word it modifies. Adverb phrase: The house was built on the hill. (modifies was built) Adjective phrase: The house on the hill is haunted. (modifies house)