Answer: C
The ether is tetrahydrofuran. Hydroxide forms the alkoxide, which displaces chloride in the same molecule. Ring closure to a five-membered ring needs four carbons between the oxygen and the halogen-bearing carbon, i.e. 4-chlorobutan-1-ol. 3-Chloropropan-1-ol would give oxetane, 5-chloropentan-1-ol would give a six-membered ring, and 2-chlorobutan-1-ol would give an epoxide.