I think the answer is E.
Statement I.
x<3, y<2
x=2,y=1
xy=2<6
x=-2,y=-5
xy=10>6
Therefore insufficient.
Statement II.
21<x<32, y^2<6 or y<2.4
x=25, y=2
xy=50>6
x=25,y=-1
xy=-25<6
Therefore Insufficient.
Combining I & II does not gives us any specific values.
Hence E.
In fact the two statements are contradicting each other for the value of x, I am hoping this is not a real GMAT question.
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