Step 1: Spot the deciding factor.
A small strong nucleophile pushes a substitution reaction, while a big bulky base pushes an elimination reaction. The size of the attacking species matters most here.
Step 2: Look at ethoxide ion.
$CH_3CH_2O^-$ is a strong nucleophile and is not very bulky.
Step 3: Predict product X.
Because it is small, it attacks the carbon directly in an SN2 way and forms an ether (the substitution product).
Step 4: Look at tert-butoxide ion.
$(CH_3)_3CO^-$ is very bulky. It cannot reach the carbon easily, so it grabs a proton instead and acts as a base.
Step 5: Predict product Y.
Being bulky it favours E2 elimination and forms an alkene.
Step 6: Match the option.
The choice showing X as the ether and Y as the alkene is option 2. \[ \boxed{\text{Option 2}} \]