Host $P$ sends the first SYN packet with $SEQ$ number $= X$, $SYN$ flag $= 1$ and $ACK$ flag $=0$ as it’s a connection request.
Host $Q$ will reply back with a SYN packet and acknowledging the arrival of $P’s$ SYN packet.
Host $Q$ will send a packet with $\textbf{SYN flag =1}$, $\textbf{SEQ number = Y}$ , to synchronize and establish the connection,
and $\textbf{ACK flag = 1}$ to acknowledge the $P’s$ SYN packet, with $\textbf{ACK number = X+1}$ because ACK number denotes the sequence number of next expecting Byte.
Then $P$ will reply back with an $ACK$ packet to complete the three-way handshake. (not asked here)
$FIN$ flag is used to terminate the connection, and will not be used here, $\textbf{FIN flag = 0}$.
Hence C is correct.