Arduino Uno Reading Fuses
Concerning your questions about clock division settings: have a look at this pretty tool, it gives you a avrdude query for setting fuses (take care!). The CKDIV8 bit of the low fuse is set by default, so an AT328p will run at 1MHz, clearing this bit will result in 8 MHz.

When flashing you should never override any checks as this may damage/lock your chip.

I see that avrdudes states the supply voltage to be 0.3 volts which is far to low for communication. Any received bits would be low level and therefore any information read will be 0. ISPs usually provide a supply voltage which often can be selected by switches on the programmer. If you are sure your programmer is allright, check your circuit in general.

Btw, which ISP-model do you use?
Is your mcu assembled on a custom pcb (setup?)? If yes, do you have an arduino(like) board to verify this behaviour?