Most traditional Var compensation-based voltage regulation methods are developed following the single-phase Volt-Var response rule. These methods typically have competent voltage regulation performance with balanced photovoltaic (PV) integration. However, certain randomness of single-phase rooftop PV installation may lead to significant PV power imbalance across three phases, especially in low voltage (LV) distribution systems. In such unbalanced situations, unintended inter-phase Volt-Var response which is ignored in the single-phase Volt-Var response rule will become significant and greatly challenge the effectiveness of the traditional methods on voltage regulation. This can further cause inverter saturation and consequently makes distribution systems vulnerable to overvoltage problems. In this paper, the mathematical equations of unbalanced three-phase Volt-Var response are first derived and analyzed to identify the strong MVE (mutual Var compensation effect) and the weak MVE. This analysis provides the theoretical foundation for the development of the proposed inter-phase coordinated consensus algorithm, which can successfully overcome PV imbalance-induced voltage regulation challenges (e.g., inverter saturation and network overvoltage), while does not need exact system parameters. The effectiveness of this method has been validated by time-series simulations with a real LV distribution system and recorded data.