Step 1: Understanding the Concept:
This question tests the correct idiomatic use of prepositions. Certain phrases and expressions in English require specific prepositions, which do not always follow a logical rule but are established by convention.
Step 2: Detailed Explanation:
The given sentence is "What is the time in your watch?".
When asking for the time as shown by a timepiece like a watch or a clock, the correct preposition to use is 'by'. The standard, idiomatic phrase is "by your watch".
The use of 'in' is incorrect in this context. You might say "The battery is in my watch," but to ask for the time it shows, you must use 'by'.
The correct sentence is: "What is the time by your watch?".
Therefore, the word 'in' is the error.
Step 3: Final Answer:
The word that is an error in the sentence is in.