Plug in. Say x = 2. Then y = 2 + 1/2 = 2.5. Now try your conditions:
I. y ≠ x
Yep, that's true.
II. y is an integer.
Nope, not true. 2.5 is not an integer.
III. xy > x2
This is the tricky one, but it is true with our plug-in -- (2.5)(2) > 22. It will ALWAYS be true because y will always be slightly bigger than x.
So the answer is I and III are true. That's (D).