Final answer:
Osteocalcin is the hormone produced in bone that regulates bone formation and provides protection against diabetes mellitus by aiding in the regulation of blood glucose levels and fat deposition.
Step-by-step explanation:
The hormone that is produced in bone and regulates bone formation, as well as protects against diabetes mellitus, is osteocalcin. Osteocalcin is an endocrine hormone secreted by bone cells, known as osteoblasts. It plays a significant role in the regulation of blood glucose levels and fat deposition. Osteocalcin increases insulin secretion, enhances the sensitivity of cells to insulin, increases the number of insulin-producing cells, and reduces fat stores. This hormone's interaction with factors that manage energy metabolism and insulin activity demonstrates how the skeletal system has functions beyond structural support and is involved in endocrine regulation.