2. 3-hydroxy-acetanilide? If Ac2O is in excess, then -OH will also be acylated.
1. Alkyllithium converts -COOH to -COR as per the alkyl group attached to Li. Here it becomes -COCH3. Addition of proton to =O causes electromeric shift to make alcohol and produce allyl cation..the excess alkyllithium acts as base and takes a proton from a cyclohexane carbon?