A compound (X) containing C,H and O is unreactive towards sodium. It also does not react with Schiff's reagent. On refluxing with an excess of hydroiodic acid, (X) yields only one organic product (Y). On hydrolysis, (Y) yields a new compound (Z) which can be converted into (Y) by reaction with red phosphorus and iodine. The compound (Z) on oxidation with potassium permanganate gives a carboxylic acid. The equivalent weight of the acid is 60.

What is the name of the compound (Z)?

ethanol

The correct answer is option 2. ethanol.

Given,

A compound $X$ containing $C$, $H$ and $O$ is not reactive towards sodium, so, it cannot be an acid or an alcohol. The compound $X$ also does not react with $Br_2$ and Schiff's base. So, it cannot be an aldehyde or a ketone.

On refluxing with an excess of hydroiodic acid, (\X\) yields only one organic product (Y), so it is a symmetrical ether.

The compound (Z) on oxidation with potassium permanganate gives a carboxylic acid and the equivalent weight of the acid is 60. Hence it can be ethanoic acid (atomic weight = 60), which is produced from the compound $Z$ on reaction with $KMnO_4$. So the compound $Z$ is ethanol. $Z$ reacts with $I_2/P_4(red)$ to give the compound $Y$ whic is ethyl iodidde. 

From these facts we can identify the compound $X$ as diethyl ether.

Thus, the name of the compound $Z$ is ethanol.