The thing about a sqrt is that it can only ever reveal the absolute value of a number.
Statement 1 says that sqrt x > y. I think the question expects you to think, ok, let's square both sides, and then we have the sqrt canceled out and: x > y^2, which means x must be greater than y. But when you square a sqrt, you end up with |x|. In other words, you can't tell whether the natural value of x is positive or negative. Thus, x could be 5 and y could be 2, in which case, x > y, but x could also equal -5. The absolute value hides the sign of x, so we can't tell just yet. Insufficient.
Statement 2 says x^3 > y. That could mean -2^3 > -20, or it could mean that 2^3 > 3. Etc. Insufficient, as well.
Combined, however, sqrt x > y tells us that the absolute value of x is greater than y, and x^3 > y tells us that even if x is negative, its negative value cubed is still greater than y. Therefore, -2^3 > y, 2^3 >y 0^3 > y, etc.
Sufficient. C