Final answer:
Passing honors is the formal recognition exchanged by two Navy ships when they meet, involving the mutual salute of their respective ensigns or flags.
Step-by-step explanation:
The formal recognition exchanged by two Navy ships when they meet is known as passing honors. Passing honors is a traditional maritime practice where one ship salutes another ship by dipping its ensign or flag and the receiving ship acknowledges the salute by doing the same. This is a sign of respect and mutual recognition between the two ships.