Step 1: Structural Identification. The compound CH$_3$CH(OH)CH$_3$ is an alcohol, indicated by the presence of the -OH group.
Step 2: Carbon Count. The molecule contains a total of 3 carbons, arranged as CH$_3$-CH-CH$_3$, with the hydroxyl group attached to the central carbon.
Step 3: Parent Chain Naming. A 3-carbon chain is named propane. With the -OH group positioned on the second carbon, the name becomes propan-2-ol.
Step 4: Verification. Comparing with alternatives: Propan-1-ol has the OH on the first carbon. Ethanol possesses only 2 carbons. Butan-2-ol contains 4 carbons. The identified structure corresponds to option (2).