Hola Ram

Literally, yes, that would be "están pidiendo" as the English is using the continuous tense "you are arking for" - sometimes the translations don't match literally because they'd sound very unnatural or incorrect. In these cases, it's very important to read the hint which is always going to tell you which tense you need to conjugate. The hint in this test question is saying "Conjugate "pedir" in El Presente"

When we say el presente we refer to the simple present, not the present progressive/continuous.

Nevertheless I added a litle note to clarify that we are referring to the present. 

I hope it helps.

Saludos

Inma