To compare the lengths of these Paths, we begin by removing identical portions. In particular, we remove the horizontal segment of length 2, a vertical segment of length 1 from the left, and a vertical segment of length 4 from the right to obtain the following images:
[[IMAGE0]]
By removing the same lengths, we do not change the relative lengths of the Paths.
Each of the Paths still has a vertical segment of length 1, so we remove each of these segments, again maintaining the relative lengths of the Paths.
[[IMAGE1]]
Each of Path 1 and Path 3 now consists of the diagonals of two of the grid squares. Thus, their original lengths were equal and so x=z.
This means that the final answer must equal (C) or (E), depending on whether x=z is less than y or greater than y.
To answer this question, we re-draw the remaining segments of Path 1 under Path 2:
[[IMAGE2]]
Since a straight line path between two points is shorter than any other path between these two points, the length of the semi-circle is longer than the total length of the two straight line segments.
This means that x=z and z<y.
(As an alternate approach, can you determine the length of each of the original Paths and compare these numerically?)