Yes, Na (Sodium) reacts with H2O (Water) to form Sodium Hydroxide (NaOH) with the liberating of H2 (Hydrogen gas). Hence, it is a Displacement Reaction.

In Chemical Equation we can prove,

Na + H2O ==> NaOH + H2↑

**Displacement Reaction:**

A displacement reaction, also known as a replacement reaction, is a type of chemical reaction where an element or a group of elements is replaced by another element or group of elements. In a displacement reaction, more reactive elements displace less reactive elements from their compounds.

**Sodium Hydroxide (NaOH) and Hydrogen Gas (H2):**

Sodium hydroxide (NaOH) is a strong base, and hydrogen gas (H2) is a diatomic molecule. In order to determine whether a displacement reaction occurs between NaOH and H2, we need to consider the reactivity of these substances.

**Reactivity of NaOH:**
- Sodium hydroxide is a highly reactive compound and readily dissociates into sodium ions (Na+) and hydroxide ions (OH-) in water.
- It is a strong base and can react with acids to form salts and water.
- NaOH is not typically involved in displacement reactions because it is a compound rather than an element.

**Reactivity of H2:**
- Hydrogen gas (H2) is a diatomic molecule that consists of two hydrogen atoms bonded together.
- Hydrogen gas is not highly reactive on its own, and it does not readily displace other elements from their compounds.
- It is more commonly involved in reactions where it combines with other elements, such as oxygen (O2), to form compounds like water (H2O).

**Conclusion:**
Based on the reactivity of NaOH and H2, it can be concluded that NaOH and H2 do not undergo a displacement reaction. NaOH is a compound, not an element, and is not involved in displacement reactions. Hydrogen gas (H2) is not highly reactive and does not readily displace other elements. Therefore, there is no displacement reaction between NaOH and H2.