moonraker nailed it, but since we had a few "B" answers on this thread let me make sure to clarify:
B is the trap answer on this question, with the trap being "what about negative numbers?". That's an extremely common trap, so remember it:
**When a Data Sufficiency involves an inequality, the most likely trap is that you'll forget about negative numbers**
And the most common way they do that is to include a variable by which you'll multiply or divide. Here, statement two gives us two possibilities. For x/y to be greater than positive-1, then x and y are either both positive or both negative, so we could have:
Both Positive: x = 4, y = 1, x/y = 4/1, and x-1 is still greater than y. So.. "YES"
Both Negative: x = -4, y = -1, x/y = 4/1 (so the statement holds) and (x - 1) = -5, which is LESS THAN -1 (which is y). So... "NO"
But then statement 1 comes to save the day - because it tells us that x is positive, then we know that both x and y are positive, so the negative "trap" is no longer available. That's why the answer is C.
Brian Galvin
GMAT Instructor
Chief Academic Officer
Veritas Prep
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