C is phenol. Then the incorrect statement is

Step I is Friedel – Craft’s alkylation.In presence of strong Lewis acid like anhydrous AlCl3,  rearrangement of carbocation occurs.∴CH3−CH2−CH2−Cl+AlCl3→CH3−CH2−C+H2+AlCl4−CH3−CH2−C+H2⇌CH3−C+H−CH3