Just to reiterate to anyone else out there like me who didn't get this, the equation in statment 1 is referring to line segments, not variable representations of the points (which upon further reflection wouldn't really make sense since you can't define a point on a geometric figure with a single number).
side X = line segment AB
side Y = line segment BC
side Z = line segment CB
Statement 1: X^2 = Y^2 + Z^2
Pythagorean Theorem..... go from there
Once I understood that, this problem made sense. Before I understood that, no clue.
:: My test experience ::