Correct Answer: D
Explanation:
Cl2 would not displace an OH, but it will oxidize it to the aldehyde.
The aldehyde group is strongly activating, and the chlorine now replaces one by one each hydrogen on the CH3 group, until you end up with CCl3CHO. This is chloral. In water and with hydroxide this is furthur oxidised to trichloroacetic acid, which easily decarboxylates to chloroform.