Step 1: Identify the starting reactions. This sequence works on toluene, first by an electrophilic substitution and then by oxidation of the methyl side chain.
Step 2: Do the substitution. Toluene undergoes bromination on the ring. The methyl group directs the bromine to the ortho and para positions, giving a bromo-toluene.
Step 3: Oxidise the side chain. Strong oxidation with $KMnO_4$ changes the methyl group into a carboxylic acid group. So the methyl becomes COOH.
Step 4: Build the product. After bromination and then oxidation, we get a bromo-benzoic acid with the correct position of the groups.
Step 5: Match to the options. Comparing the expected positions of the bromine and the acid group, the structure shown in option 1 is the right product arrangement.
Step 6: State the answer. So the correct products X and Y are those in structure 1. \[ \boxed{\text{Structure 1}} \]
