The total distance between stations A and B is the distance traveled by Train X in 5 hours (from 9 AM to 2 PM):
\[ \text{Distance} = 90 \times 5 = 450 \text{ km} \]
Train Y starts 2 hours later, so it travels for \( t - 2 \) hours. Let the time at which the trains cross be \( t \).
The distance covered by Train Y is:
\[ 60 \times (t - 2) \]
The total distance covered by both trains when they meet is 450 km:
\[ 90t = 450 - 60 \times (t - 2) \]
Expanding the equation:
\[ 90t = 450 - 60t + 120 \]
\[ 150t = 570 \]
\[ t = \frac{570}{150} = 3.8 \text{ hours} \]
The trains cross at 9 AM + 3.8 hours = 12:48 PM.
Correct answer: (C) 12:48 PM.