Step 1: Concept
Energy conservation: Potential energy lost = Elastic energy gained. $mgh = \frac{1}{2} \times \text{Stress} \times \text{Strain} \times \text{Volume}$.
Step 2: Analysis
$m = 40$ kg, $h = 2$ m, $L = 0.5$ m, $A = 2 \times 4 \times 10^{-4}$ $m^2$ (two legs).
Stress ($\sigma$) = $0.9 \times 10^8$ $N/m^2$.
Volume ($V$) = $A \times L = 8 \times 10^{-4} \times 0.5 = 4 \times 10^{-4}$ $m^3$.
Step 3: Calculation
$mgh = (40)(10)(2) = 800$ J.
Elastic energy = $\frac{1}{2} \frac{\sigma^2}{Y} V = 800$.
$Y = \frac{\sigma^2 V}{2 \times 800} = \frac{(0.81 \times 10^{16}) \times (4 \times 10^{-4})}{1600} \approx 2.05 \times 10^9$ $N/m^2$.
Step 4: Conclusion
Hence, the Young's modulus is $2.05 \times 10^9$ $N/m^2$.
Final Answer:(C)