Is evolution a fact, theory, or fiction?

You said "Designed or created", which imply a force applied by an intelligence which is not suggested by any evidence I know of. As for evidence of human evolution, it is from the fossil record, showing several stages of change between a common ancestor and both modern humans and apes. I do not know offhand what species it was, or the name of its discoverer, but if you look at the progression through Homo Erectus and Homo Habilis to Homo Sapiens, there is a clear pattern of change in the same group of creatures, a change in a species as it becomes human.

As for your question of how we were designed or created from our evolutionary ancestors, I'm afraid you fundamentally misunderstand evolution. We were neither created nor designed. We just happened to have advantages which built up until we became modern humans. I invite you to read my explanation of the mechanism of evolution in a higher level comment, it goes over (hopefully clearly) why and how things evolve. As for why it might become different groups, species separate when they are physically separated. This is because certain attributes are more or less advantageous in different environments, which means that different attributes are 'selected for'. Selected for is in quotes because there isn't really a selection; there's only what survives best. If suddenly for some reason short people were better at surviving and having children, within two or three generations humans would pretty much all be short. No one chose it, it just happened because of the environment we are in. A real life example of this is a gene found commonly in Tibet, which changes how they metabolize oxygen. They do it much more efficiently because it is vital but their environment has so little oxygen. This means that really only those Tibetans who happen by chance to efficiently metabolize oxygen can do the work they need to do to survive without constantly being out of breath and energy.