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I agree with you. It should be E. I analysed it this way

From (1), we get (2x+2)/y=n, where n is an integer
this equals 2x/y +2/y = n. Now 2x/y is an integer only if y=2. Therfore, it does not give any solution for the question

From (2), we get y=nx or nx/y =1. This means that only for n=2 can we be certain that 2x/y is an integer. Otherwise, no definite solution.