when you see aldehydes with a base like NaOH think Aldol Condensation!
in the dilute base the propanal reacts with itself, so you have a base catalyzed condensation of *two* propanals. basically, the two propanals fuse together to form one compound
In the first step, the base strips away one of the alpha hydrogens from one of the propanals and forms a *temporary* alkene. But, in doing so the oxygen looses its double bond with the C b/c C can only hold 4 bonds. This is unstable for the oxygen so it rearranges to reform the double bond on the oxygen, leaving lone pairs on the alpha carbon. The deficient alpha carbon then attacks the second propanal. it attacks the carbonyl carbon of the second propanal. From there, just rearrange the molecule a little bit and you have the 3-hydroxy-2-methylpentanal - the oxygen is protonated to form the hydroxy group
it's a little hard to explain w/o figures, but if you have the kaplan notes/bluebook Aldol Condensation is explained on pg 360.
hope this helped!