If the range of the integers is to be greater than 9, either the difference between x and y is greater than 9, x or y is greater than 11 (9 more than the smallest term, 2), or x or y is less than -1 (9 less than the largest term, 8).
Statement (1) is insufficient: given that inequality, x and y could be separated by as little as 4, in which case they could be, for instance, 2 and 6. In that case, the range is less than 9. However, x and y could be separated by much more, or they could be very large or small numbers. There are many ways in which the range could be greater than 9.
Statement (2) is also insufficient. If x and y are 8 and 9, respectively, the range is less than 9. But if, as mentioned before, y is greater than 11, the range is greater than 9.
Taken together, the statements are sufficient. The smallest possible value for x, according to (2), is 8. According to (1), y must be more than 3 greater than x, so y must be at least 12. If y is 12, the range of the set is 10; if y is greater, the range is also greater. (C) is the correct choice.