Step 1: Understanding the Concept:
A Zener diode is a heavily doped p-n junction designed to work in reverse breakdown, where the voltage across it stays nearly constant over a wide range of current.
Step 2: Check each:
In reverse bias it acts as a voltage regulator. In forward bias it conducts like a normal p-n diode.
B and C say it regulates in forward bias, which is wrong, since a forward diode has a drop of only about \(0.7\) V and no sharp breakdown. D reverses the roles, so it is wrong too.
Final Answer:
A Zener diode regulates in reverse bias and acts as a normal diode in forward bias, option (A).
\[ \boxed{\text{Option (A)}} \]