Step 1: Equation of the circle and line.
The equation of the circle C is given by:
\[
x^2 + y^2 = 10
\]
The equation of the line is:
\[
x + y = 2
\]
We need to find the points of intersection of the line with the circle, which will give us the coordinates of points \(P\) and \(Q\).
Step 2: Solve for points of intersection.
Substitute \(y = 2 - x\) (from \(x + y = 2\)) into the circle equation \(x^2 + y^2 = 10\):
\[
x^2 + (2 - x)^2 = 10
\]
Expanding:
\[
x^2 + (4 - 4x + x^2) = 10
\]
\[
2x^2 - 4x + 4 = 10
\]
Simplify:
\[
2x^2 - 4x - 6 = 0
\]
Divide by 2:
\[
x^2 - 2x - 3 = 0
\]
Factor:
\[
(x - 3)(x + 1) = 0
\]
Thus, \(x = 3\) or \(x = -1\). Now, substitute these \(x\)-values into \(y = 2 - x\) to find the corresponding \(y\)-coordinates:
- For \(x = 3\), \(y = 2 - 3 = -1\), so point \(P\) is \((3, -1)\).
- For \(x = -1\), \(y = 2 - (-1) = 3\), so point \(Q\) is \((-1, 3)\).
Hence, the points of intersection are \(P(3, -1)\) and \(Q(-1, 3)\).
Step 3: Equation of the chord MN.
The length of the chord \(MN\) is 2 units and its slope is \(-1\). The general equation of a line with slope \(-1\) can be written as:
\[
y = -x + c
\]
We are given that the length of the chord is 2 units, so we can use the fact that the distance between two points on the chord is 2 units.
The line intersects the circle at two points, so we substitute \(y = -x + c\) into the equation of the circle \(x^2 + y^2 = 10\):
\[
x^2 + (-x + c)^2 = 10
\]
Expanding:
\[
x^2 + (x^2 - 2cx + c^2) = 10
\]
\[
2x^2 - 2cx + c^2 = 10
\]
We need to solve for \(c\) that satisfies the chord length condition. The solution for this is found by using the condition that the distance between the intersection points is 2 units.
Step 4: Distance between the chords PQ and MN.
To find the distance between the chords PQ and MN, we first find the perpendicular distance from the center of the circle to the line \(x + y = 2\). This is the distance from the origin to the line, which is:
\[
\frac{|0 + 0 - 2|}{\sqrt{1^2 + 1^2}} = \frac{2}{\sqrt{2}} = \sqrt{2}
\]
Now, we find the perpendicular distance from the center of the circle to the line \(y = -x + c\). This is found in a similar manner, and after solving, we obtain the distance as \(3 - \sqrt{2}\).
Step 5: Conclusion.
Hence, the distance between the chords PQ and MN is:
\[
\boxed{3 - \sqrt{2}}
\]