Here's the solution:
The correct answer is (b) is, is.
Explanation:
The first blank requires a form of the verb "to be" that agrees with the subject "she." Since "she" is a singular pronoun, we use "is."
The second blank also requires a form of the verb "to be" to state that "she" is fine. Again, since the subject is "she," we use "is."
So the complete sentence will be:
How is she?
She is fine.