Also, it's in passive voice, because the subject 'the Earth's surface' experiences the action 'to be covered' by the object 'water'. 'By' is used in passive voice as it refers to the agent of action.
Option C: 'Is covered' is in the simple present tense, in passive voice. It presents a truth. Hence option C is correct.
Option A: 'Covers' is a simple present tense verb in active voice. The sentence is in active voice when the subject 'Earth's surface' performs an action 'to cover'. But here it experiences the action 'to be covered'.
Option B: 'Covered' is a simple past tense verb whereas the sentence is in present tense.
Option D: 'Was covered' is also in past tense in passive voice, as opposed to the sentence.
Hence options A, B and D are wrong.