Step 1: Reaction with \( \text{Br}_2 \) and NaOH.
The reaction of phthalimide with \( \text{Br}_2 \) and NaOH leads to the formation of anthranilic acid through a nucleophilic substitution.
Step 2: Explanation.
Thus, phthalimide reacts with bromine and NaOH to produce anthranilic acid.
Final Answer:
\[
\boxed{\text{D) anthranilic acid}}
\]