Step 1: Identify reagent \(X\).
Benzenediazonium chloride undergoes hydrolysis on warming with water.
\[
\mathrm{C_6H_5N_2^+Cl^-}
+\mathrm{H_2O}
\rightarrow
\mathrm{C_6H_5OH}
+\mathrm{N_2}
+\mathrm{HCl}
\]
Thus,
\[
X=\mathrm{H_2O}
\]
Step 2: Identify product \(Y\).
The product formed is phenol.
Phenol reacts with aqueous NaOH to form sodium phenoxide.
\[
\mathrm{C_6H_5OH}
+\mathrm{NaOH}
\rightarrow
\mathrm{C_6H_5ONa}
+\mathrm{H_2O}
\]
Hence,
\[
Y=\mathrm{Phenol}
\]
Step 3: Final conclusion.
Therefore,
\[
\boxed{X=\mathrm{H_2O},\qquad
Y=\mathrm{Phenol}}
\]
Hence, the correct option is \(\boxed{(D)}\).