What is the product of the reaction given below?

Given below are two statements:
Statement $(I)$: Benzyl chloride reacts faster in $S_N1$ mechanism than ethyl chloride.
Statement $(II)$: Ethyl carbocation intermediate is less stabilized by hyperconjugation than benzyl carbocation by resonance.
In the light of the above statements, choose the correct answer from the options given below:

Which of the following is an incorrect statement?

The treatment of alkyl chlorides with aqueous $KOH$ leads to the formation of alcohols,but in the presence of alcoholic $KOH$,alkenes are the major products. Explain.

In the following pairs of halogen compounds,which compound undergoes faster $S_N 1$ reaction?

$C_2H_5Cl + KCN$ $\xrightarrow{} X$ $\xrightarrow{\text{Hydrolysis}} Y.$
$X$ and $Y$ are: