Gabriel synthesis is used for the preparation of primary amines. Phthalimide on treatment with ethanolic potassium hydroxide forms potassium salt of phthalimide which on heating with alkyl halide followed by alkaline hydrolysis produces the corresponding primary amine. Aromatic primary amines cannot be prepared by this method because aryl halides do not undergo nucleophilic substitution with the anion formed by phthalimide.

What is the product formed when potassium phthalimide reacts with methyl chloride? 

N-Methylphthalimide 

The correct answer is option 2. N-Methylphthalimide.

When potassium phthalimide reacts with methyl chloride, the product formed is N-Methylphthalimide.

Potassium phthalimide reacts with methyl chloride \((CH_3Cl)\) via a nucleophilic substitution reaction (\(S_N2\) mechanism). The nucleophilic nitrogen in potassium phthalimide attacks the methyl carbon in methyl chloride, displacing the chloride ion.

The reaction can be represented as follows:

The product of this reaction is N-Methylphthalimide.