Yes, the picture is purportedly of Miley Cyrus giving someone a BJ, oral sex. First of all, even if such a photo existed, it would also definitely be illegal. Secondly, there's no contact with the "recipient." Finally, it looks like the pic is Photoshopped (altered), as shown by The Paparazzis website.
Miley Cyrus isn't the first Disney star to suffer from such indignities; of course, the prior one I'm thinking about is Vanessa Hudgens, and unfortunately hers wasn't a Photoshopped image as appears the case in this BJ image.
So, you can calm down now. It looks like Miley Cyrus BJ flap is all fake, and hopefully die down. Let's let the 16-year-old (who admittedly, is growing up way too fast, and has the potential to become as diva-ish as Lindsay Lohan) get back to her life.