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The command that retrieves the current database in MS-SQL is correctly identified as the one that uses the syntax `SELECT DB_NAME()`. This built-in function, `DB_NAME()`, returns the name of the current database context in SQL Server. It effectively allows a user to determine which database they are currently connected to, which can be particularly useful in multi-database environments.

Other options listed pertain to different database systems or use incorrect syntax for MS-SQL. For instance, the command using `instance_name FROM v$instance` relates to Oracle Database, indicating that it is looking for instance information rather than database names. The `SELECT database()` function is specific to MySQL, which serves the same purpose as the correct command here but for a different database system. Lastly, `SELECT current_database()` is a syntax used in PostgreSQL to return the current database in that environment, not MS-SQL. This difference highlights the importance of knowing the appropriate commands for the specific database management system being used.