Concept:
The given function
\[
u=\frac{xy}{x+y}
\]
is a homogeneous function.
A function \(f(x,y)\) is said to be homogeneous of degree \(n\) if
\[
f(\lambda x,\lambda y)=\lambda^n f(x,y).
\]
For homogeneous functions, Euler's theorem states
\[
\boxed{
x\frac{\partial u}{\partial x}
+
y\frac{\partial u}{\partial y}
=
nu
}
\]
where \(n\) is the degree of homogeneity.
Step 1: Determine the degree of homogeneity.
Replace \(x\) by \(\lambda x\) and \(y\) by \(\lambda y\).
\[
u(\lambda x,\lambda y)
=
\frac{(\lambda x)(\lambda y)}
{\lambda x+\lambda y}
\]
\[
=
\frac{\lambda^2xy}
{\lambda(x+y)}
\]
\[
=
\lambda\frac{xy}{x+y}
\]
\[
=
\lambda u
\]
Hence,
\[
\boxed{n=1}
\]
Step 2: Apply Euler's theorem.
Since the degree of homogeneity is \(1\),
\[
x\frac{\partial u}{\partial x}
+
y\frac{\partial u}{\partial y}
=
1\cdot u
\]
Therefore,
\[
\boxed{
x\frac{\partial u}{\partial x}
+
y\frac{\partial u}{\partial y}
=
u
}
\]
Step 3: Choose the correct option.
Thus,
\[
\boxed{Option (B) is correct
\]