The correct answer is B) The bottom block touches the top block. The term "two-blocked" refers to a situation where the load block and the hook block have been hoisted up until they are in contact with each other, essentially "two-blocking" the system. This indicates that the crane or hoist has reached the limit of its safe working range and any further hoisting could result in damage to the equipment or a dangerous situation. The other options are incorrect because A) refers to the line jumping the sheaves, C) refers to having two separate blocks, and D) refers to turns in the fall line, none of which accurately describe the meaning of "two-blocked."