Step 1: Step 1: Form A
Chlorobenzene reacts with Mg in dry ether to give the Grignard reagent phenylmagnesium chloride, \(\text{C}_6\text{H}_5\text{MgCl}\).
Step 2: Step 2: Reaction with ethanol
A Grignard reagent behaves as a strong base. It takes the acidic proton from the O-H group of ethanol.
Step 3: Product
The phenyl group picks up the proton and becomes benzene. \(\text{C}_6\text{H}_5\text{MgCl} + \text{C}_2\text{H}_5\text{OH} \rightarrow \text{C}_6\text{H}_6 + \text{Mg(OC}_2\text{H}_5)\text{Cl}\).
Final Answer:
B is benzene.
\[ \boxed{\text{(B) }\text{Benzene}} \]