Firstly, start off in discussing what a dynamic & living religion is:
--> A religion which embodies its core beliefs whilst still adapting facets (the characteristics of religion) to modern context. This in turn allows for adherents to practice their given religion within their societal bounds.
--> Dynamic implies it is sustainable and adaptable yet true to its fundamental beliefs
--> Living furthers that idea that it is active and relevant over ever-changing contexts
Throughout your response it would be best to discuss in close reference to the syllabus points of the 'characteristics of religion' which regard:
1. Beliefs & believers
2. Sacred Texts
3. Ethics
4. Practice/ritual
Depending on how you wish to approach the response structurally, you could possibly discuss these aspects, how they relate to one another and the way in which they shape a 'dynamic & living religion'. Most importantly, you should illustrate how the characteristic of religion foster the nature of a dynamic and living religion with relevant examples from the Religious Traditions (Christianity, Judaism, Buddhism, Hindism, Islam) you have studied.