In a two-hybrid assay, the bait protein carries a DNA-binding domain and docks on the reporter gene's promoter, while the prey protein carries a transcription-activation domain. Neither domain alone can switch the reporter on: the DNA-binding domain has nothing to recruit the transcription machinery with, and the activation domain has no way to reach the promoter by itself.
Only when bait and prey physically interact are the two domains brought together, reconstituting a working transcription factor that turns the reporter gene on.
So both bait and prey protein must enter the cell for reporter gene activation to occur.
It helps to think of the two-hybrid system as a two-piece switch that only works when both halves are present at once.
Since the assay is specifically designed so the reporter only lights up when both fusion proteins are present and interacting, that is the condition required.
The correct answer is both bait and prey protein.