"Despite of the heavy rainfall, the match continued as planned without any interruptions."
The preposition despite is never used with the word "of" because it's already a single word that means "regardless of," "even though," or "notwithstanding". "continued" is the correct verb form here, and "was continued" is incorrect as it is passive and not needed. Hence, option 2 is incorrect. The whole sentence is in past tense, hence, 'continued' is correct instead of 'continue'.
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