Step 1: Concept
This problem can be modeled as a right-angled triangle where the ladder is the hypotenuse ($c$), the distance from the wall is the base ($a$), and the height on the wall is the perpendicular ($b$).
Step 2: Analysis
According to the Pythagoras theorem: $a^2 + b^2 = c^2$. Given $c = 6.5$ m and $a = 2.5$ m.
Step 3: Reasoning
$(2.5)^2 + b^2 = (6.5)^2$
$6.25 + b^2 = 42.25$
$b^2 = 42.25 - 6.25 = 36$
$b = \sqrt{36} = 6$ m.
Step 4: Conclusion
The ladder reaches a height of 6.0 m on the wall.
Final Answer: (D)