The correct option is C Did
The given sentence is in simple past tense, as suggested by the words "last night". It's in question form, hence the verb 'watch' is used in the place of 'watched'.
Option A: 'Had' is an auxiliary verb, which when combined with a past participle, forms a past perfect tense. 'Had watched', for example, where 'watched' is a past participle. The past perfect tense indicates an action that takes place before another.
The given sentence does not indicate more than one action. Hence option A is incorrect.
Option B: 'Are' indicates the present continuous tense. It combines with a present participle, for example, 'are watching'. (where 'watching' is a present participle). The sentence is in past tense, hence B is incorrect.
Option D: 'Will' refers to the future, whereas the sentence indicates the past. Hence D is incorrect.
Option C: 'Did' is an auxiliary verb that indicates the simple past tense. Hence it is the most suitable option, and C is correct.