Answer: C
A C7 tertiary alcohol with a six-membered ring is 1-methylcyclohexanol. It dehydrates (Zaitsev) to 1-methylcyclohexene (Y), which gives its epoxide Z with mCPBA. Acidic hydrolysis opens the epoxide by anti attack of water, giving the trans diol, trans-1-methylcyclohexane-1,2-diol.