Step 1: Use the work-energy idea.
The change in kinetic energy equals the total work done by all forces. So $W_{\text{net}} = KE_{f} - KE_{i}$.
Step 2: Find the starting kinetic energy.
\[ KE_{i} = \tfrac{1}{2}mv^{2} = \tfrac{1}{2}(5)(20)^{2} = 1000 \text{ J} \]
Step 3: Note the final kinetic energy.
It is given as $KE_{f} = 400$ J. So the change is $\Delta KE = 400 - 1000 = -600$ J.
Step 4: List the forces that slow it down.
Going up, both gravity and air drag push down. Gravity is $mg = 5\times 10 = 50$ N and air drag is $10$ N.
Step 5: Write the work done over height $h$.
Both forces oppose the motion, so \[ W_{\text{net}} = -(50 + 10)h = -60h \]
Step 6: Set the two equal and solve.
\[ -60h = -600 \quad\Rightarrow\quad h = 10 \text{ m} \]So the distance between X and Y is $10$ m, which is option 2.
\[ \boxed{h = 10 \text{ m}} \]