Mi abuelo fernando. le llamo le llama se llama se llamo

The correct answer is:  [C]:  "se llama" .

Note:  The Spanish verb is "llamarse" ; a "reflexive verb" ; that means, literally, 
"to call oneself" .

The subject is "Mi abuelo" — which is Spanish for:  "My grandfather" ; which takes the "third person, singular" subject.

As such, the correct answer is:  [C]:  "se llama" .

      "Mi abuelo    se llama    Fernando." 

  (which, literally, translates to:  "My grandfather calls himself "Fernando" . ;

or, for practical purposes:  "My grandfather's name is "Fernando".

I'm fluent. i'm from mexico. : )