Step 1: Reaction of toluene with chromyl chloride
Toluene reacts with:
\[
CrO_2Cl_2/CS_2
\]
followed by hydrolysis.
This is:
Etard Reaction
It converts the methyl group into aldehyde.
\[
C_6H_5CH_3 \rightarrow C_6H_5CHO
\]
So,
\[
X=\text{Benzaldehyde}
\]
Step 2: Reaction with hydrazine and KOH
Benzaldehyde reacts with:
\[
N_2H_4
\]
and then
\[
KOH/Ethylene\ glycol
\]
This is:
Wolff-Kishner Reduction
It converts:
\[
-CHO \rightarrow -CH_3
\]
Thus:
\[
C_6H_5CHO \rightarrow C_6H_5CH_3
\]
So,
\[
Y=\text{Toluene}
\]
\[
\boxed{Y=\text{Toluene}}
\]
Therefore, the correct answer is:
\[
\boxed{(A)}
\]