C
解析：
[C]项错误，in which they live 为限制性定语从句，修饰 the environment。
[A]项正确，主句主干为 humans have the ability。
[B]项正确，t策率争o modify the environment 为动词不定式作后置定语，修饰 the ability
[D]项正确，thus subjecting... 作结果状语。
故正确答案为[C]。
【句子结构分析】
Furthermore, humans have the ability ①to modify the environment in which they live, ②thus subjecting all other life forms to their own peculiar ideas and fancies.
本句为主从复合句，主句主干 humans have the ability 为主谓宾结构。
①为动词不定式作 the ability 的后置定语；in which they live 为 which 引导的限制性定语从句，修饰 the environment；②为现在分词结构作结果状语，修饰主句；to their own peculiar ideas and fancies 为介词结构作 subjecting 的宾语 all other life forms 的补语。