Step 1: Convert
Line 2 is $\frac{x}{1/2} = \frac{y - 1}{1} = \frac{z - 2}{-1}$, direction proportional to $(1, 2, -2)$.
Step 2: Triple product
The scalar triple product of $\overrightarrow{PQ} = (1, -2, 1)$, $(1, -\lambda, \lambda)$ and $(1, 2, -2)$ equals $-2 - \lambda$.
Step 3: Condition
Zero gives $\lambda = -2$. Option (C).
Final Answer:
Option (C).
\[ \boxed{-2} \]