Statement 1
xy > 0 => both x and y are of the same sign => x/y > 0
But (y^2) - 1 can be > 0 or < 0 depending on whether y is between -1 and 1 or outside -1 and 1. Hence insufficient. Ans has to be B,C or E
Statement 2
y < 0. We don't know anything about x => INSUFFICIENT. Ans has to be C or E