Why species is called as smallest taxonomic level?

It is the smallest and basic unit of classification. Taxonomic studies consider a group of individual organisms with fundamental similarities as a species. Thus all the individual members belonging to particular species show all similar characters and can breed among themselves to produce a similar type of organism.

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explanation:

b,bacteria convert nitrates

into nitrogen gas.

d,plants and animals take in

and use nitrogen compounds.

e,bacteria break down waste    

products and return nitrogen  

to the soil.

a,bacteria convert atmospheric

nitrogen to ammonia.

c,bacteria convert ammonia

to nitrites and nitrates.