Step 1: Understanding Induction.
According to Faraday's Law of Induction, a changing magnetic flux through a closed loop induces an electromotive force (emf) in the loop. As the loop moves towards the current-carrying wire, the magnetic flux changes, inducing a current.
Step 2: Determining the Direction of the Induced Current.
Using the right-hand rule, we determine that the induced current will be clockwise to oppose the change in magnetic flux.
Step 3: Conclusion.
The correct answer is (B), current is induced in the loop clockwise.