\textcolor{red}{Step 1: Understanding the reaction for 'x'.}
The product 'x' is obtained from benzene by reacting it with carbon monoxide and hydrogen chloride in the presence of cuprous chloride, which is the reaction in the Friedel-Crafts acylation. The product is benzaldehyde (C$_6$H$_5$CHO).
\textcolor{red}{Step 2: Understanding the reaction for 'y'.}
The product 'y' is the major product obtained by reacting benzene with ethanoyl chloride in the presence of anhydrous AlCl$_3$, which is the Friedel-Crafts acylation reaction. The product formed is acetophenone (C$_6$H$_5$COCH$_3$).
\textcolor{red}{Step 3: Reaction between x and y.}
When benzaldehyde (x) and acetophenone (y) are heated in the presence of an alkali, they undergo the benzoin condensation reaction, resulting in benzoin (C$_6$H$_5$CHOHCOC$_6$H$_5$).
\textcolor{red}{Step 4: Counting the $\pi$ electrons in z.}
Benzoin (z) contains two benzene rings, and each benzene ring contributes 6 $\pi$ electrons. Thus, the total number of $\pi$ electrons in benzoin is 12.