Step 1: Recall difference between \(KCN\) and \(AgCN\).
- \(KCN\) gives alkyl cyanides (\(R-C\equiv N\)) because \(CN^-\) attacks through carbon.
- \(AgCN\) gives alkyl isocyanides (\(R-N\equiv C\)) because attack occurs through nitrogen.
Step 2: Apply to given reaction.
\[
C_2H_5Cl + AgCN \rightarrow C_2H_5NC
\]
So product \(X\) is ethyl isocyanide.
Step 3: Check which statement is true.
In \(C_2H_5NC\), ethyl group is attached to nitrogen:
\[
C_2H_5 - N \equiv C
\]
Thus statement (III) is true.
Final Answer:
\[
\boxed{\text{III}}
\]