You need to be careful with applying a polynomial saying it is continuous - the topology (and thus the notion of continuity) is very different from the usual one. It is a good exercise to try and show that a continuous map from a discrete space to $\mathbb{R}$ (with the usual topology) must be constant.
As for the exercise, the topology on $X$ is the discrete topology - Indeed, one needs to show that every singleton subset of $X$ is open in $X$, but it is already open in $\mathbb{R}^2$. (and $X$ is infinite)
Now, $X$ can't be compact - we can take all singletons as an open cover, which will have not finite subcover. Furthermore, $X$ cannot be connected - all singletons are both open and closed (and $X$ has more than one point)
We arrive at C - $X$ is open in $\mathbb{R}^2$ because every subset is - this is exactly the definition of the discrete topology : all sets are open.