Step 1: Recall the definition of Fanno flow.
Fanno flow is the flow through a constant-area duct in which
\[
\boxed{\text{friction is present but there is no heat transfer}.}
\]
Thus, the flow is adiabatic but irreversible due to wall friction.
Step 2: Identify the correct characteristic.
Therefore,
\[
\boxed{\text{Friction without heat transfer}}
\]
is the defining characteristic of Fanno flow.
Hence,
\[
\boxed{(B)}
\]
is the correct answer.