Final answer:
The formal recognition exchanged between Navy ships when they meet at sea is called Passing Honors, a tradition that shows respect and adherence to naval customs.
Step-by-step explanation:
When two Navy ships meet at sea, the formal recognition exchanged between them is known as Passing Honors. This maritime tradition involves various salutes and ceremonial actions depending on the type of vessels involved and their nations. The type of acknowledgement given may include sounding the ship's whistle, dipping the ensign, and personnel standing at attention and saluting as the ships pass one another. Passing Honors aims to show mutual respect and adherence to naval customs and traditions.