Question

look!andy--- in the garden (play) suitable verb formof this sentence

Answer 1

is playing

is the suitable verb form of the sentence.

So the complete sentence is:

Look ! Andy is playing in the garden.

Answer 2

is playing, look! Andy is playing in the garden (play)

The sentence is a present continuous tense.

Does it represent the ongoing work, states that look at there at Andy and what she is actually doing?

She is playing the given verb play, so corresponding present continuous tense of play is playing.