In a redox reaction, two key processes occur: oxidation and reduction. Understanding these is crucial for analyzing chemical changes.
The question states that element X loses electrons. According to the definition, the loss of electrons signifies oxidation.
The question also states that element Y gains electrons. The gain of electrons signifies reduction.
Combining these findings, in this specific redox displacement reaction, element X is oxidised and element Y is reduced. This directly matches one of the provided options.
The correct statement is: X is oxidised and Y is reduced.