The correct option is A X and Y may attract each other.
The correct answer to this question is option D.
Z does not deflect the compass needle. It means that Z is not a magnetic material.
X and Y both are deflecting the compass needle. It means that both of them may be magnets.
Statement in option A is “X and Z must repel each other.” Z is a non-magnetic material, so it cannot be repelled by X or Y.
Statement in option B is “Z may be a horseshoe magnet.” Z is a non-magnetic material, so it cannot be a magnet.
Statement in option C is “Both X and Y are magnets, and they have only north poles.” X and Y both may be the magnets but they will have both north and south poles.Monopoles do not exist.
Statement in option D is “X and Y may attract each other.” X and Y both may be the magnets, so they can attract each other.
Therefore, the statement in option D is correct and the others are incorrect.
The answer to this question is option D.