The correct option is C were killed
Here, 'were killed' in simple past is correct because it is used to indicate an
action that has already been completed. Here, due to the earthquake, thousands of people 'were' (past action) killed.
'Was killed' is incorrect because thousands of people is plural, not singular. Thus, usage of 'were' is incorrect.
'Are killed' is incorrect because 'are' is used in simple present tense's plural form, but here, simple past tense's plural form is used.
'Is killed' is incorrect because 'is' is used in simple present tense's singular form, but here, simple past tense's plural form is used.