What is the product when ferric chloride reacts with propan-1-ol?
There is no reaction between propan-1-ol and iron(III) chloride because propan-1-ol isn't acidic enough to react with it. Instead, phenol reacts with iron(III) chloride because it is acidic enough to form either the phenoxide or iron-phenol complex. On this basis, aliphatic and aromatic alcohol are distinguished. The mechanism of reaction of phenol and $\ce{FeCl3}$ can be found here.

According to this quora post:


  Ferric chloride test is specific for determination of phenol presence.
  So as mentioned above, phenol is more acidic and can form phenoxide
  anions. This can form complex with Fe(III) in $\ce{FeCl3}$, which has a
  blue/green/red color depending on the nature of the phenol. Alcohol is
  too weakly acidic to even form the alkoxide or the complex.




So what's happening?

It actually forms a sol-gel. It is a part of iron-oxide based gels. 

One noble application of this is non noble metals electrocatalysts for high temperature PEM fuel cells. For this purpose, Fe-containing carbon aerogels were prepared in resorcinol-furfuraldehyde resins. The resins are made in premixed solution of $\ce{FeCl3}$ and propanol.