Answer: C
The diol is 1,1'-bi(cyclohexyl)-1,1'-diol. After loss of water from one ring, a ring CHX2 of the other ring migrates to the cation, which enlarges that ring to seven members and leaves the carbonyl next to the new spiro carbon. The product is spiro[5.6]dodecan-7-one, with the ketone in the seven-membered ring.