Belinda lived in a little white house with her four pets and a wagon. She had a black kitten named Ink, a grey mouse named Blink, a yellow dog named Mustard and a coward dragon named Custard

Belinda lived in a white house.

Explanation:
Belinda lived in a white house, as indicated by option 'B'. Here is a detailed explanation:

1. Introduction:
- Belinda is the subject of focus in this question.
- The question asks about the place where Belinda lived.

2. The options:
- Option 'A' states that Belinda lived in a red house.
- Option 'B' states that Belinda lived in a white house.
- Option 'C' states that Belinda lived in a small but Amd.
- Option 'D' states that Belinda lived in a mud house.

3. Analyzing the options:
- Option 'A': A red house is not mentioned anywhere in the question, so it can be eliminated.
- Option 'C': The phrase "small but Amd" does not make sense and seems unrelated to the question, so it can be eliminated.
- Option 'D': While a mud house is mentioned, it is not specified whether Belinda lived in one, so it cannot be determined based on the given information.

4. Conclusion:
- After analyzing the options, we are left with option 'B' as the correct answer.
- The question does not provide any additional information about Belinda's house, so we can only rely on the given options.
- Therefore, according to the options provided, Belinda lived in a white house.

Overall, based on the given options, it can be concluded that Belinda lived in a white house.