Step 1: Understand the concept of nitrogen fixation. Nitrogen fixation is a process where atmospheric nitrogen ($N_2$), which is inert and not directly usable by most organisms, is converted into a biologically usable form, such as ammonia ($NH_3$). This process is primarily carried out by certain bacteria, including free-living bacteria and those in symbiotic relationships with plants (e.g., Rhizobium in legumes).