Step 1: This is the carbylamine (isocyanide) test. A primary amine, when heated with chloroform (CHCl3) and alcoholic KOH, gives a foul-smelling isocyanide (carbylamine).
Step 2: Aniline (C6H5NH2) is a primary aromatic amine, so it undergoes this reaction:
C6H5NH2 + CHCl3 + 3KOH → C6H5NC + 3KCl + 3H2O
Step 3: The organic product is phenyl isocyanide (C6H5NC), recognised by its extremely unpleasant smell.
Conclusion: Option (ii) Phenyl isocyanide is correct. Phenyl cyanide (C6H5CN) and phenol are not formed in this reaction, and isothiocyanate needs CS2, not CHCl3.