Step 1: Stepwise analysis.
- The reaction with P\(_1,2\) converts ethanol to an aldehyde (propanal).
- The reaction with Mg/ether forms a Grignard reagent.
- The reaction with formaldehyde results in a secondary alcohol (butanol).
- The final reaction with water gives n-propyl alcohol.
Step 2: Conclusion.
Thus, compound D is n-propyl alcohol.