Answer: D
The compound is 1-bromo-2-methylcyclohexane. Ag+ assists ionisation to a secondary cation at C1. The hydrogen on C2 (which bears the methyl group) shifts with its electron pair to C1, giving the tertiary 1-methylcyclohexyl cation, trapped by water to give 1-methylcyclohexan-1-ol. Ring expansion to a cycloheptyl cation has no driving force.