The major product expected from the following reaction is :
← JEE Main 2017 · 8 Apr · Shift 1
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JEE Main 2017 · 8 Apr · Shift 1, Chemistry question 55

Answer and worked solution
Official answer: C
HCl catalyses lactonisation between the group and the neighbouring (Fischer esterification inside the molecule, forming a five-membered lactone). The amide is much less reactive toward acyl substitution and stays, and the phenolic OH is not replaced. That is structure (3).