Step 1: Identify Alcohol X:
Formula $C_4H_{10}O$.
Condition: Reacts with conc. HCl at room temperature to form Chloride Y.
This indicates the Lucas Test. Tertiary alcohols react immediately at room temperature. Secondary take minutes, Primary require heat/ZnCl2.
Structure of X (Tertiary Butyl Alcohol): $(CH_3)_3C-OH$ (2-Methylpropan-2-ol).
Step 2: Identify Chloride Y:
Reaction: $(CH_3)_3C-OH + HCl \rightarrow (CH_3)_3C-Cl + H_2O$.
Y is t-Butyl Chloride (2-Chloro-2-methylpropane).
Step 3: Identify Z:
Reaction of Y with Mg/Ether $\rightarrow$ Grignard Reagent ($t-BuMgCl$).
Reaction with Water $\rightarrow$ Hydrolysis.
$(CH_3)_3C-MgCl + H_2O \rightarrow (CH_3)_3C-H + Mg(OH)Cl$.
Z is Isobutane (2-Methylpropane).
Step 4: Check Options:
Y = 2-Chloro-2-methylpropane.
Z = 2-Methylpropane.
Matches Option (B) (Diagram corresponds to t-butyl chloride and isobutane).