Step 1: Understanding the Reaction Mechanism
The given reaction involves sodium ethoxide (CH$_3$CH$_2$ONa) and tert-butyl chloride [(CH$_3$)$_3$CCl] in ethanol. Tertiary alkyl halides undergo elimination (E2) rather than substitution due to steric hindrance.
Step 2: Identifying the Major Product
Since sodium ethoxide is a strong base, elimination occurs via the E2 mechanism, leading to the formation of an alkene. The product formed is isobutene (\( CH_2 = C(CH_3)_2 \)). Thus, the correct answer is (B).