Step 1: The molecular orbital configuration of \( O_2 \) is given by:
\[
\sigma_{1s}^2, \, \sigma_{1s}^*{}^2, \, \sigma_{2s}^2, \, \sigma_{2s}^*{}^2, \, \sigma_{2p_z}^2, \, \pi_{2p_x}^1, \, \pi_{2p_y}^1.
\]
There are 12 electrons in the valence shell, and the molecular orbitals fill according to the Aufbau principle and Hund's rule.
Step 2: The bond order of a molecule is calculated using the formula:
\[
\text{Bond order} = \frac{1}{2} \left( \text{number of bonding electrons} - \text{number of antibonding electrons} \right).
\]
For \( O_2 \), the number of bonding electrons is 8, and the number of antibonding electrons is 4. Thus,
\[
\text{Bond order} = \frac{1}{2} \left( 8 - 4 \right) = 2.
\]
Step 3: Since there are unpaired electrons in the molecular orbitals (\( \pi_{2p_x}^1, \pi_{2p_y}^1 \)), the molecule exhibits paramagnetism.
Thus, the bond order of \( O_2 \) is 2, and it is paramagnetic.
Hence, the correct answer is option (B).