1. It's an adjective phrase (adjectival prepositional phrase) modifying "people," yes.
2. The Matrix is correct. Since it's a movie title, you need to put it in italics or underline those two words. Poems, short stories, and such have quotation marks around them, but book titles, movie titles, titles of artwork, and others need to be italicized or underlined.
1. Mother Teresa helped many people in India.
(In this sentence, what is the part of speech of 'in India?' Is it an adverbial phrase modifying 'helped' or is it an adjective phrase which modifies 'people?')
2. You watched The Matrix yesterday.
3. You watched the Matrix yesterday.
(Which one is right,'The' or 'the?' I think 'The Matrix' is a movie title, right?)
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