Hi Vincen,
We're asked if X + Y is greater than 0. This is a YES/NO question and we can solve it by TESTing VALUES.
1) X^2 - Y^2 > 1
IF.... X = 2, Y = 1, then 2+1 IS greater than 0 and the answer to the question is YES.
IF.... X = -2, Y = -1, then -2 + (-1) is NOT greater than 0 and the answer to the question is NO.
Fact 1 is INSUFFICIENT.
2) (X/Y) + 1 > 0
The same TESTs we used in Fact 1 also 'fit' Fact 2:
IF.... X = 2, Y = 1, then 2+1 IS greater than 0 and the answer to the question is YES.
IF.... X = -2, Y = -1, then -2 + (-1) is NOT greater than 0 and the answer to the question is NO.
Fact 2 is INSUFFICIENT.
Combined, we don't have to do any additional work; the TESTs that we have already fit BOTH Facts and lead to 2 different answers (one "YES" and one "NO").
Combined, INSUFFICIENT
Final Answer: E
GMAT assassins aren't born, they're made,
Rich