The correct option is C Aryl amines react with nitrous acid to produce phenols
Alkyl amines are stronger base than aryl amines because in alkyl amine the lone pair of electrons on N is localised whereas in aryl amine the lone pair of electrons on N are delocalised in the benzene ring, thus they are less available to get protonated.
Alkyl amines reacts with nitrous acid to give alkyl diazonium salt which is very unstable, so it gets degraded to alcohol whereas diazonium salts from aryl amines are much stable due to the double bond nature between benzene and N caused due to delocalisation of electron in the benzene ring.
Hence, aryl amines (if it is primary) on reaction with nitrous acid gives diazonium salt.
Alkyl amines are stronger base than NH3 due to the +I effect of the alkyl substituents.
Hence, opiton (c) is the correct answer.