Step 1: Use the given conditions.
The problem gives that:
\( f(x) \) is continuous on \( [0, 5] \) and differentiable in \( (0, 5) \),
\( f(0) = 0 \),
\( |f'(x)| \leq \frac{1}{5} \) for all \( x \in (0, 5) \).
Step 2: Interpret the condition on the derivative.
The condition \( |f'(x)| \leq \frac{1}{5} \) implies that the slope of the tangent to the curve at any point is at most \( \frac{1}{5} \). Therefore, the function \( f(x) \) can change at a rate no faster than \( \frac{1}{5} \) as \( x \) increases.
Step 3: Consider the simplest linear function.
Given that \( f(0) = 0 \) and the derivative bound, the most natural function that satisfies these conditions is a linear function of the form \( f(x) = \frac{x}{5} \). This is because the derivative of \( f(x) = \frac{x}{5} \) is:
\[
f'(x) = \frac{1}{5},
\]
which satisfies \( |f'(x)| \leq \frac{1}{5} \) for all \( x \in (0, 5) \), and the function also passes through the origin.
Step 4: Conclude the solution.
Thus, the function \( f(x) = \frac{x}{5} \) satisfies all the given conditions, and therefore, the correct answer is:
\[
f(x) = \frac{x}{5}.
\]