Thanks to a person called zerocents and James White you can make media queries to work on Windows Phone devices by adding the following metatag in the head of your html:

<meta http-equiv="X-UA-Compatible" content="IE=edge" />

I did a couple of tests and it works on a Nokia Lumia 925. It also seems to have a positive impact on Outlook 2000, 2002 and 2003. I did a test with border-radius in Litmus and when I use the ie-edge metatag it renders border-radius beautifully.

Regarding Outlook 97-03, it uses the rendering engine of the IE version that is installed. If they are running Windows XP they can't go higher than IE8.

Sources:
https://www.campaignmonitor.com/forums/post/30139
http://blog.jmwhite.co.uk/2014/03/01/windows-phone-does-support-css3-media-queries-in-html-email/