Bebo is the singular, first-person conjugation, so it's used when it's the speaker that drinks. "Eu bebo água" = I drink water.
Bebe is the singular, third-person conjugation, so it's used when speaking of someone that drinks. "Ela bebe leite" = She drinks milk.
MangoHero1, yes, it happen in almost all cases, but only in Brazilian Portuguese. In other country like Portugual, Angola, Mozambique, etc., The sound is the same with "tea, teacher, touch, tittle, tiger."
The "T" in portugues sounds allways as an english T (like Teacher like someone told you), but it sounds as "ch" only when itfollows an "e" or an "i", like in the words "notícia>/nochísia/", "forte>/fojchi/"...