Step 1: Understanding the Concept:
A Grignard reagent attacks the electrophilic carbon of a nitrile group, forming an imine salt. Acid hydrolysis then converts it to a ketone.
Step 2: Reaction:
\[ \text{C}_6\text{H}_5\text{CN} + \text{C}_6\text{H}_5\text{MgBr} \rightarrow \text{C}_6\text{H}_5\text{-C(=NMgBr)-C}_6\text{H}_5\ (X) \]
\[ X + \text{H}_3\text{O}^+ \rightarrow \text{C}_6\text{H}_5\text{-CO-C}_6\text{H}_5\ (Y) + \text{MgBr(OH)} + \text{NH}_3 \]
Y is benzophenone. The ammonia released matches the equation given in the question, which shows that the imine nitrogen was lost during hydrolysis.
Final Answer:
Y is benzophenone, option (A).
\[ \boxed{\text{Benzophenone}} \]