The correct option is B Penetration phase
Bacteriophage contains the genes for lysozyme enzyme. During penetration phase, the bacteriophage's tail secretes the enzyme lysozyme which breaks down the bacterial cell wall into segments. Therefore the break down of the cell by the enzyme lysozyme forms a hole on the host cell and the bacteriophage inserts the DNA into the bacterial cytoplasm. So the correct answer is 'penetration phase'.