The correct option is
A is regarded
The given sentence is in passive voice. That means that the subject ("The whale") receives the action. (In active voice, the subject performs the action.) Also, this sentence states a fact, hence it will be in simple present tense. ( The simple present tense states a universal truth or a habit.)
Option B: 'Is regarded' is in the simple present tense (in passive form). It completes the given sentence, as the whale 'is regarded by the world' as a fish.
Option A: 'Regards' is a verb in the simple present tense, but it's in the active voice. Hence this option is wrong.
Option C: The word 'regarded' is a past participle and does not state any tense on its own. 'Is' is an auxiliary verb (helping verb) essential for expressing the tense.
Option D: The phrase 'which has been regarded' looks like a part of a relative clause (which has been regarded as a fish). It classifies as a defining clause which would be separated from the rest of the sentence by a comma before and after the clause. Since there isn't any comma before, this option isn't appropriate.
Hence options A, C and D are incorrect.