(C) $Ac_2O$ (acetic anhydride) acts as a dehydrating agent when heated with carboxylic acids. In the case of $o$-phenylacetic acid,the two carboxylic

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(C) $Ac_2O$ (acetic anhydride) acts as a dehydrating agent when heated with carboxylic acids. In the case of $o$-phenylacetic acid,the two carboxylic acid groups are positioned such that they can undergo intramolecular cyclization to form a cyclic anhydride. The reaction involves the loss of a water molecule between the two carboxyl groups,resulting in the formation of homophthalic anhydride.