Since $x$ and $y$ are odd, $x - z$ is odd - even = odd. $(x - z)^2$ is odd$^2$ = odd. $y \cdot$ odd = odd, so (1) cannot be even — possible error. Check each:
(1) Odd × odd = odd $\rightarrow$ cannot be even — possible false.
(2) $y^2$ is odd, odd × odd = odd — possible. Wait, they ask cannot be true. If $y^2$ odd × $(x-z)$ odd = odd — this is true, so (2) could be true.
Testing values confirms (2) is correct as cannot be even. Detailed parity check finalises answer.