The correct option is
A x2+y2−2x−2y+1=0We have
S(x,2)=0 gives two identical solutions x=1
⇒ line y=2 is a tangent to the circle S(x,y)=0 at the point (1,2)
and, S(1,y)=0 gives two distinct solutions y=0,2
⇒ line x=1 cuts the circle S(x,y)=0 at the points, (1,0) and (1.2)
Clearly, from the fig., the points A(1,2) and B(1,0) are diametrically opposite points.
Thus, equation of the circle, is
(x−1)2+y(y−2)=0
i.e., x2+y2−2x−2y+1=0.