This reaction should cause ring closure at either the $o-$ or $p-$ position relative to the methyl substituent on the ring (as methyl is an $o,p-$directing group), giving the following products:
The question is: Which one of these is the major product? Is substitution preferred at the ortho position or para position, and why?
A few more examples of these types of questions:
This would give which of the following?