"See the people waiting in line"

I know how to use "see an object - ing structures", but sometimes I am confused whether the present participle modifies the object as an adjective like people (who are) waiting... or it functions as an object complement like I see you running. So could you tell the difference you sense between them?

"See the people waiting in line"

1) See (look at) the people who are waiting line.

2) See (look at) the people waiting in line.

Thank you so much as usual and have a good and safe day.