Using statement 1: If the X-intercept of line K is greater than 1, it may or not intersect circle C. For example, if the line is x=3 then it does not intersect the circle C, but if the line is y = -x/4 + 1/2 then it has x-intercept = 2 (>1) and does intersect the circle C. Therefore statement (1) is insufficient.
Using statement 2: If the slope of the line is -1/10, then it may or may not intersect the circle C. For example, y= -x/10 + 2 does not intersect the circle, but y = -x/10 + 0.5 does intersect the circle, though both have a slope of -1/10. Therefore statement 2 is insufficient to answer the question.
Combining statements 1 and 2, the statements together are still insufficient to answer the question. For example, y = -x/10 + 0.5 has an x-intercept greater than 1 and a slope of -1/10, but it does intersect the circle C. However, y = -x/10 + 2 also has an x-intercept greater than 1 and a slope of -1/10, but it does not intersect the circle C.
The answer is (E).