Step 1: Identify the differential equation.
\[
\frac{dy}{dx} = \frac{y+1}{x-1}
\]
This is a separable differential equation.
Step 2: Separate variables.
\[
\frac{dy}{y+1} = \frac{dx}{x-1}
\]
Step 3: Integrate both sides.
\[
\int \frac{dy}{y+1} = \int \frac{dx}{x-1}
\]
\[
\ln|y+1| = \ln|x-1| + c
\]
Step 4: Simplify the solution.
\[
\ln|y+1| - \ln|x-1| = c
\]
\[
\ln \left|\frac{y+1}{x-1}\right| = c
\]
\[
\frac{y+1}{x-1} = k
\]
Step 5: Apply initial condition \( y(1) = 2 \).
\[
\frac{2+1}{1-1} = \frac{3}{0}
\]
This is undefined.
Step 6: Interpretation.
The differential equation is not defined at \( x = 1 \), since denominator \( x-1 = 0 \).
Hence no solution can pass through the point \( (1,2) \).
Step 7: Final conclusion.
\[
\boxed{\text{Number of solutions} = 0}
\]