Aluminum chloride is a Lewis acid catalyst and works in the same way as FeCl₃ does. Benzene is converted into chlorobenzene by chlorination of benzene in the presence of AlCl₃. The reaction occurs by electrophilic substitution. Cl₂ forms a coordination complex with AlCl₃, forming Cl⁺AlCl₄^- complex, which gives a slight positive charge to Cl and AlCl₄^- is negatively charged. This Cl⁺ then reacts with the aromatic double bond of the benzene ring to form an addition product, followed by deprotonation to form chlorobenzene and AlCl₃ and HCl as side products. The correct option is (ii).