Step 1: Understanding bacteriophage lambda.
Lambda phage is a bacterial virus that infects {Escherichia coli} and is widely used as a cloning vector.
Step 2: Role in gene transfer.
It introduces foreign DNA into bacterial cells during infection, making it useful in recombinant DNA technology.
Step 3: Eliminating incorrect options.
Lambda phage does not infect plant, yeast, or insect cells.
Step 4: Conclusion.
Therefore, lambda phage is used for gene transfer in bacteria.