Hey Gurpinder,
Great question - and this one comes down to that classic GMAT method of writing questions with very specific language!
Choice 1 does work as a possible solution for this question, but the question asks which "Must Be True".
Choice 1 says that x AND z are both 0, but even if just z (but not necessarily both) is zero this one can hold true. It's not true that both must be 0.
Choice 5 uses "OR" and not "AND". So here, we know that either z is 0 or x is 1. That MUST BE true, so 5 is correct whereas 1 is not. Choice 5 actually disproves choice 1 - if x is 1, then we don't need z to be 0, and obviously x is not 0, so 1 does not have to be the case.
The good news here - you found two answer choices that could be true, so hopefully that encourages you to go back and read the "fine print" on AND vs. OR.
Brian Galvin
GMAT Instructor
Chief Academic Officer
Veritas Prep
Looking for GMAT practice questions? Try out the Veritas Prep Question Bank.
Learn More.