An aromatic compound (A) on treatment with aqueous ammonia and heating forms compound (B) which on heating with Br₂ and KOH forms a compound (C) of molecular formula C₇H₇NO.  

Identify the reaction taking place while converting compound B to compound C.

Hofmann Bromamide reaction 

The correct answer is option 3. Hofmann Bromamide reaction.

Step 1:  To find out the structures of compound (B) and (C)

(i)Since compound (C) with molecular formula C₆H₇N is formed from compound (B) on treatment with Br₂ + KOH (i.e., Hofmann Bromamide reaction), therefore, compound (B) must be an amide and (C) must be an amine. The only amine having molecular formula C₇H₇NO is C₆H₅NH₂ (aniline).

(ii) Since (C) is aniline, therefore, the amide from which it is formed must be benzamide (C₆H₅CONH₂). Thus, compound ‘B’ is benzamide.

The chemical equation showing the conversion of (B) to (C) is

Step2: To find out the structure of compound (A)

Since compound (B) is formed from compound (A) with aqueous ammonia and heating, therefore, compound (A) must be benzoic acid or benzenecarboxylic acid.