Verbs are the important part of the sentences that portray the action. 'Is' is the correct linking verb that can be fitted best in the sentence. Thus, option B is correct.
Linking verbs are the forms of the verbs that connect and interlink the subject of the sentence with the other part of the sentence. They do not show any action or occurrences.
Linking verb 'is' best fits the sentence as it links that Phoenix is the largest and capital city of Arizona. Here, the city is a singular form so the verb 'is ' will be used instead of 'are.'
Therefore, 'is' the linking verb that fits the blank.
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