Captain Lama's answer is obviously much more comprehensive. But if you want to know how to game the multiple-choice system, read on!
If we're convinced that _one_ of the choices is correct, we can assume that $x$ and $y$ commute. We can do that because all choices are Abelian, hence $xy = yx$ no matter which the group ends up being.
But this means that, since $x^2y = yx$, we have
\begin{align*} x^2y &= yx \tag{given}\\\ x^2y &= xy \tag{commutativity}\\\ x^2 &= x \tag{$y^{-1}$ on the right}\\\ x &=1. \tag{multiply by $x^{-1}$} \end{align*}
Thus we can safely throw $x$ out of the generating set, as well as any relation involving $x$, in this case. Then your group is $\langle y \mid y^2 = e\rangle$, clearly $\Bbb Z_2$.