An essential amino acid is one that cannot be synthesized by the body and must be obtained from the diet.
Thus, the correct answer is Option C: Valine.
A dipeptide, “x”, on complete hydrolysis gives “y” and “z”; “y” on treatment with aqueous HNO$_2$, produces lactic acid. On the other hand, “z” on heating gives the following cyclic molecule. 
Based on the information given, the dipeptide X is:
Three friends, P, Q, and R, are solving a puzzle with statements:
(i) If P is a knight, Q is a knave.
(ii) If Q is a knight, R is a spy.
(iii) If R is a knight, P is a knave. Knights always tell the truth, knaves always lie, and spies sometimes tell the truth. If each friend is either a knight, knave, or spy, who is the knight?