The reaction sequence involves multiple steps leading to the formation of the major product X. Let's analyze each step:
- Nitration: The starting compound is an ethylbenzene derivative with a nitro group at the para position. Initially, this undergoes chlorination in the presence of Cl2/FeCl3, where the chlorine substitutes at the ortho position relative to the ethyl group due to the activating effect of the ethyl group.
- Reduction: The nitro group is then reduced to an amino group using Sn/HCl, leading to the formation of an aniline derivative.
- Diazotization: The amino group undergoes diazotization with NaNO2/HCl at low temperature (273–278 K) to form a diazonium salt.
- Substitution: Finally, the diazonium group is replaced with an iodine atom using KI, resulting in the formation of the iodinated product.
The major product X is formed as a result of these sequential transformations. The correct structure of X matches option (3).

Conclusion: The major product X formed in the given reaction sequence is the iodinated compound represented by option (3).