Step 1: Understand bacterial conjugation.
Bacterial conjugation is a mechanism of horizontal gene transfer in which genetic material is transferred from one bacterial cell to another.
Step 2: Identify the requirement for conjugation.
Conjugation requires physical contact between donor and recipient bacterial cells. This contact is established by a structure called the sex pilus or conjugation pilus.
Step 3: Analyze option (A).
Uptake of free DNA directly from the environment is called transformation, not conjugation. Therefore, option (A) is incorrect.
Step 4: Analyze option (B).
During conjugation, the donor bacterium transfers plasmid DNA or chromosomal DNA to the recipient through direct contact via pilus. Hence, option (B) is correct.
Step 5: Analyze option (C).
Transfer of genetic material from viruses to bacteria is called transduction, which is mediated by bacteriophages. Thus, option (C) is incorrect.
Step 6: Analyze option (D).
Conjugation is not reproduction because it does not increase bacterial number. It only transfers genetic information between cells. Therefore, option (D) is incorrect.
Step 7: Final conclusion.
Hence, bacterial conjugation requires direct contact between two bacterial cells through pilus.
\[
\boxed{\text{requires direct contact between two bacterial cells through pilus}}
\]
Therefore, the correct answer is option (B).