The correct option is A is read
A sentence in passive voice focuses on the person or thing that receives an action rather than the person/thing that performs the action.
For example, 'My room was cleaned by me.'
The basic structure of passive voice is:
the appropriate form of the verb 'to be' + past participle
Option A: The given sentence states a habit ('daily' suggests the habit), hence it's in simple present tense. So, the simple present form of 'to be', 'is' is used. (The simple present tense states a general fact or a usual habit.)
'Is read' is the appropriate structure, formed by the simple present tense verb 'is' + past participle (read). Hence option A is correct.
Option B: 'Is reading' is not the correct verb form used in the passive voice. 'Reading' is a present participle whereas the required verb form is a past participle. Hence B is incorrect.
Option C: 'Are' in 'are read' is a plural verb which must be used for a plural subject. (The subject and verb must agree with one another in number.) But the subject here "Newspaper" is singular. Hence C is incorrect.
Option D: 'Is being read' is in present continuous tense. But the sentence does not state a particular action that is being carried out at the moment. It states a habit that takes place on a daily basis. Hence D is incorrect.