**Concept: The question tests on Inequalities**

**Solution:**

Constraints: None

Statement 1: y > -1

When y = -0.5, then y^2<1

When y = 2, then y^2>1

Therefore Statement 1 Alone is Insufficient. Answer options could be B, C or E

Statement 2: y < 1

When y = 0.5, then y^2<1

When y = -2, then y^2>1

Again we get 2 different answers.

Therefore Statement 2 Alone is Insufficient.

Answer Options could be C or E.

Combining Both Statements: y > -1 and y < 1.

Therefore y lies between -1 and +1 and square of any values (including 0) will also be less than 1.

Option C