An Interesting Modifier touching rule ambiguity from an OG question

Hi experts
Could you please make this rule more clear for me. I'm struggling here. We know that the modifier touch rule has some exceptions such as vital modifiers in between the modifier and the noun to be modified are permitted. But apart from that , are these two rules mentioned below absolute ?

1) modifier must touch the noun it modifies in the sense that pattern must be "noun then modifier "

Or

2) in the opening modifiers are allowed to come before noun and touch it


So does that mean below sentence will be wrong ?


Question 787 from 2017 OG

Option B

In her book illustrations , carefully coordinating them with her narratives , Beatrix Potter capitalized on her keen observation and love of the natural word.

"Verbal modifier , noun modifier , noun "
structure allowed ? Although touching happens here it could be interpreted as noun modifier in the middle modifying "illustrations" instead of Beatrix Potter .

What's is the rule in this case ?

Thanks a ton in advance


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