Combine the pairs of sentences by using participles present/past: The house was decorated with lights. It looked beautiful.

Decorated with lights, the house looked beautiful.

Decorating with lights, the house looked beautiful.

The house was decorating with lights and looked beautiful.

None of these

Decorated with lights, the house looked beautiful.

This sentence uses the past participle "decorated" to combine the ideas.

It avoids repetition and clearly connects the decoration with the appearance of the house.