Answer: D
CHX3CHX2COCl and CHX2NX2 give the diazo ketone CHX3CHX2COCHNX2. With AgX2O it loses NX2 to form a keto-carbene, which undergoes Wolff rearrangement to the ketene CHX3CHX2CH=C=O. Water adds to give CHX3CHX2CHX2COOH, so the chain is lengthened by one carbon.