answer : its about the bonding capacity of the molecule
first of all: water is a polar molecule and therefore hydrogen bonding exist within the molecule.
hydrogen bonding is when hydrogen bond with either flourine, nitrogen or oxygen.
ethanol is a polar molecule and there is a hydrogen bonding within its molecule. However, propane is non-polar molecule and dispersion forces is the only intermolecular force that is exist within its molecule.
Due to similar bonding capacity, ethanol is soluble in water.
