Answer: A
The amine is converted into the diazonium ion PhX2C(OH)−CHX2NX2X+, which loses NX2 in a semipinacol rearrangement. A phenyl group migrates from the carbinol carbon to the electron-deficient CHX2, leaving PhCHX2−CX+(OH)Ph, which loses HX+ to give PhCHX2−CO−Ph.