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