The correct option is
C Have
The second sentence, 'We were expecting you', indicates that the person being addressed, has just come. The present perfect tense is used to indicate actions completed in the recent past. The format of verb in present perfect tense is: 'Have'+past participle form of the main verb. The main verb is 'come', whose past participle form is 'come'. Hence, the present perfect form of the verb is: 'have come'. Hence, option B is the correct answer.
Option A: The auxiliary, 'are' is used along with the present continuous form of the verb. However, in the given sentence, there verb, 'come' is in simple present tense. Hence, this option is incorrect.
Option C: The modal, 'may' is used to express a possibility. Eg: 'It may rain today'. It is also used to express permission. Eg: 'You may enter my room only after prior approval'.
Option D: The modal, 'can' is used to express ability or provide permission.
The first sentence does not express a possibility that the person being addressed may/ may not come. It does also not express any capability. The speaker is also not giving permission for the person being addressed to come. The person being addressed has already come. Hence, options C and D are incorrect.