Step 1: Understanding the Concept
We need to find the center of circle C using the given geometric conditions. Then, we need to check which of the given circle equations is satisfied by the coordinates of this center.
Step 2: Key Formula or Approach
1. Let the center of circle C be $(h,k)$ and its radius be $r$.
2. Condition 1: Circle touches the X-axis. This means the radius is equal to the absolute value of the y-coordinate of the center, i.e., $r = |k|$. The equation is $(x-h)^2+(y-k)^2 = k^2$.
3. Condition 2: Intercept on the Y-axis is 2. The length of the intercept made by a circle $(x-h)^2+(y-k)^2=r^2$ on the Y-axis ($x=0$) is $2\sqrt{r^2-h^2}$.
4. Condition 3: The center $(h,k)$ lies on the line $y=x+1$, so $k=h+1$.
5. Solve these equations to find $(h,k)$.
6. Substitute $(h,k)$ into the option equations to see which one holds true.
Step 3: Detailed Explanation
1. Use the intercept condition:
The radius is $r=|k|$. The Y-intercept length is $2\sqrt{r^2-h^2} = 2$.
\[ \sqrt{k^2 - h^2} = 1 \]
\[ k^2 - h^2 = 1 \]
2. Use the line condition:
The center $(h,k)$ lies on $y=x+1$, so we have:
\[ k = h+1 \]
3. Solve for h and k:
Substitute the expression for $k$ from the line condition into the equation from the intercept condition:
\[ (h+1)^2 - h^2 = 1 \]
\[ (h^2+2h+1) - h^2 = 1 \]
\[ 2h+1 = 1 \implies 2h=0 \implies h=0 \]
Now find $k$:
\[ k = h+1 = 0+1 = 1 \]
So, the center of the circle C is the point $(0,1)$.
4. Check the options:
We need to find which of the given circles passes through the point $(0,1)$. We substitute $x=0, y=1$ into each equation.
(A) $0^2+1^2-2(0)-4(1)+1 = 1-4+1 = -2 \neq 0$.
(B) $0^2+1^2-26(0)-20(1)+19 = 1-20+19 = 0$. This is satisfied.
(C) $0^2+1^2-20(0)-26(1)+19 = 1-26+19 = -6 \neq 0$.
(D) $0^2+1^2+2(0)-4(1)+1 = 1-4+1 = -2 \neq 0$.
Step 4: Final Answer
The center of circle C is $(0,1)$. The only circle from the options that passes through this point is $x^2+y^2-26x-20y+19=0$.