The reaction described in the question is the Reimer-Tiemann reaction, which is a reaction between aromatic compounds and chloroform in the presence of an alcoholic KOH solution. This reaction leads to the formation of a substituted phenol by introducing a formyl group (-CHO) in the aromatic ring.
For this reaction to proceed, the amino group (-NH\(_2\)) must be in the para position relative to the methyl group in order to get a positive result. In the given options, p-Methylbenzylamine (option C) will provide the required positioning of the amino group to give a positive result when treated with chloroform and alcoholic KOH, leading to a successful Reimer-Tiemann reaction.