The bisection method is a method for finding the roots of a continuous function ie finding $ x $ such that $ f(x) $ equals zero. Thus, you need a function which has a zero equal to $ \sqrt{5} $. The function $x^2 - 5 = f(x)$ will do.
Then, select an initial interval $[a, b]$ which contains the root. and for which $f(a)$ and $f(b)$ have different signs. The interval $[2, 3]$ will do.
The bisection method converges by repeatedly cutting the length of this interval in half.
Here is pseudocode from wikipedia:
N ← 1
While N ≤ NMAX # limit iterations to prevent infinite loop
c ← (a + b)/2 # new midpoint
If f(c) = 0 or (b – a)/2 < TOL then # solution found
Output(c)
Stop
EndIf
N ← N + 1 # increment step counter
If sign(f(c)) = sign(f(a)) then a ← c else b ← c # new interval
EndWhile
Output("Method failed.") # max number of steps exceeded
The difference between the midpoint of the $n-th$ interval and the root $c$ is given by
$$|c_n - c| \leq \frac{|b-a|}{2^n}$$
which follows directly from the fact that the interval is halved each iteration. You can figure out the number of iterations necessary for the desired $\epsilon$ using this formula.