Look at what the principle actually requires, inducing an animal to move in a way that intentionally causes fear of injury or annoyance to someone else. It does not require that the animal actually catch or injure the victim, the fear caused by the chase itself is enough to satisfy the definition.
X set his dog on Y specifically to make Y run and to teach him a lesson, which is both an inducement of the animal's movement and an intentional attempt to frighten Y, done without Y's consent and against his will. Every one of those elements, the inducement, the intention to cause fear, and the lack of consent, lines up with the wording of the principle.
Arguments that no offence occurred because Y was not physically harmed, or because X only meant to scare him rather than injure him, actually work against X rather than for him, since causing fear through this method is exactly what the principle is targeting, not just physical injury.
So the correct answer is X has committed an offence of use of criminal force.
Asking what the principle would need to say for each option to hold clarifies the answer.
Since the required elements, inducement and intended fear, are already present and none of the other three options' assumed conditions actually exist in the rule, the option finding an offence is the one that fits.
Therefore, the correct answer is X has committed an offence of use of criminal force.