Concept:
Ethers react with HI to undergo cleavage of the C-O bond.
Step 1: Given ether.
\[
C_6H_5CH_2-O-C_6H_5
\]
This is benzyl phenyl ether.
Step 2: Site of cleavage.
The bond breaks at alkyl side (benzyl carbon), because aryl-O bond is resistant to cleavage.
Step 3: Products formed.
Benzyl part gives benzyl iodide:
\[
C_6H_5CH_2I
\]
Phenoxy part gives phenol after protonation:
\[
C_6H_5OH
\]
Step 4: Final answer.
\[
\boxed{C_6H_5CH_2I \text{ and } C_6H_5OH}
\]
Hence, correct option is (E).