Mole fraction = 0.04/1 = 1/25. 
In 25 moles of the total mixture, 1 mole of ethanol and 24 moles of water are present. 
24 moles of water weigh 24 x 18 = 432 g = 432 mL (18g is the molar mass of water) 
1 mole of ethanol is present in 432 mL of water. 
Molarity is no. of moles of solute present in 1 L of solution. 
So molarity = 1 x 1000 / 432 
 = 1000/432 
 = 2.315 M (approx.)