The correct answer is C. had caught/were singing.
The fisherman had caught more fish in one night than ever before, so when they anchored in the harbor, they were singing with joy at the thought of their reward.
Option A is incorrect because the fisherman had already caught the fish before they anchored in the harbor.
Option B is incorrect because the fisherman were singing at the thought of their reward, not after they had received it.
Option D is incorrect because the fisherman had already caught the fish before they anchored in the harbor, so they could not have been singing while they were catching them.
Option E is incorrect because the fisherman were singing at the thought of their reward, not after they had received it.