A loop invariant is any condition which is true for the start of the loop, for every iteration of the loop and for the exit of the loop.
Before 1st iterations values of $(x,y)$ are $(1,0)$
After 1st iteration values of $x$ and $y$ are $(2,1)$
After 2nd iteration values of $x$ and $y$ are $(4,2)$
After 3rd iteration values of $x$ and $y$ are $(8,3)$
$\vdots$
After nth iteration values of $x$ and $y$ are $(2^n,n)$
This loop will not terminate and that means we need not worry about the condition when loop exits $(p\to q$ is TRUE if $p$ is false) So $E$ is false
$D$ is the right option