The fundamentals of the multiplication of positive integers is the concept being tested in this question here.
Remember,
Odd * Odd = Odd
Odd * Even = Even
Even * Even = Even
The product of any two positive integers will be even, if at least one of them is even. On the other hand, the product of any two positive integers will be odd only when both of them are odd.
From the question statement, we know that all three of x, y and z are positive integers. We also know that x and y are prime numbers. A couple of points to be noted from this data:
It is not given that x and y are distinct. So, we can take a case where x and y are same.
2 is an even prime number, so x and y CAN be even.
With this, let us look at the statements now.
From statement I, we know that z is even. This means that at least one among x and y is an even prime number. But, this is not sufficient for us to find a unique value of y. Statement I alone is insufficient.
Answer options A and D can be eliminated. Possible answer options at this stage are B, C or E.
From statement II, we know that x is odd. There is no data whatsoever about either z or y to help us find out a unique value for y. Statement II is insufficient.
Answer option B can be ruled out.
Combining statements I and II, we know that z is even and x is odd. Since the product of x and y is yielding an even integer z, it follows that y HAS to be an even integer. But, y is also a prime number.
Therefore, the value of y HAS to be 2. The combination of statements is sufficient to find a unique value of y.
The correct answer option is C.
Hope this helps!