Concept:
Euler's method is a numerical technique for approximating the solution of the initial value problem
\[
\frac{dy}{dx}=f(x,y), \qquad y(x_0)=y_0.
\]
The iterative formula is
\[
y_{n+1}=y_n+h\,f(x_n,y_n),
\]
where \(h\) is the step size.
Step 1: Write the given data.
Given,
\[
\frac{dy}{dx}=xy+x=x(y+1),
\]
with
\[
x_0=0,\qquad
y_0=1,\qquad
h=0.1.
\]
Step 2: Compute \(y_1\).
First,
\[
f(x_0,y_0)=0(1+1)=0.
\]
Hence,
\[
y_1
=
y_0+h\,f(x_0,y_0)
=
1+0.1(0)
=
1.
\]
Thus,
\[
x_1=0.1,\qquad y_1=1.
\]
Step 3: Compute \(y_2\).
Now,
\[
f(x_1,y_1)
=
0.1(1+1)
=
0.2.
\]
Therefore,
\[
y_2
=
1+0.1(0.2)
=
1.02.
\]
Hence,
\[
\boxed{y(0.2)\approx1.02.}
\]
Therefore, the correct option is
\[
\boxed{(C)\;1.02.}
\]