Step 1: Concept
Phenol is highly activated toward electrophilic aromatic substitution due to the $+M$ effect of the $-OH$ group.
Step 2: Bromine Water Effect
In aqueous solution (bromine water), the ionization of phenol to the phenoxide ion is enhanced. The phenoxide ion is even more activating than phenol.
Step 3: Reaction
Substitution occurs at all available ortho and para positions simultaneously.
$\text{Phenol} + 3Br_2(aq) \rightarrow \text{2,4,6-tribromophenol (white ppt)} + 3HBr$.
Step 4: Conclusion
The product is a white precipitate of 2, 4, 6-tribromophenol.
Final Answer: (D)