Step 1: Understand the reaction mechanism.
The reaction described is known as the Wurtz-Fittig reaction, which involves the reaction of an alkyl halide (benzyl chloride) with magnesium metal in dry ether to form a Grignard reagent, followed by hydrolysis with water.
Step 2: Formation of the Grignard reagent.
Benzyl chloride (\( \text{C}_6\text{H}_5\text{CH}_2\text{Cl} \)) reacts with magnesium metal in dry ether, forming the Grignard reagent:
\[
\text{C}_6\text{H}_5\text{CH}_2\text{Cl} + \text{Mg} \xrightarrow{\text{ether}} \text{C}_6\text{H}_5\text{CH}_2\text{MgCl}
\]
This is a benzyl magnesium chloride.
Step 3: Reaction with water.
When the Grignard reagent (\( \text{C}_6\text{H}_5\text{CH}_2\text{MgCl} \)) is treated with water, the magnesium halide is hydrolyzed, resulting in the formation of toluene (methylbenzene):
\[
\text{C}_6\text{H}_5\text{CH}_2\text{MgCl} + \text{H}_2\text{O} \rightarrow \text{C}_6\text{H}_5\text{CH}_3 + \text{Mg(OH)Cl}
\]
The product formed is toluene.
Step 4: Conclusion.
Therefore, the compound 'A' is toluene.