The reaction shown is the Fries rearrangement, where phenolic esters rearrange to ortho- and para-hydroxy ketones using a Lewis acid catalyst like anhydrous AlCl₃. It is an intramolecular rearrangement, meaning the acyl group migrates within the same molecule. Anhydrous AlCl₃ is crucial to avoid hydrolysis of the acyl chloride. For a disubstituted benzene like this, multiple products (ortho and para to each OH) are possible, but the total number is not eight.

Final answer: The true statements are "AlCl₃ must be anhydrous" and "It is known as Fries rearrangement".