Step 1: Solve the differential equation.
The given equation is:
\[
x \, dy + 2y \, dx = 0
\]
We can separate the variables and solve:
\[
\frac{dy}{y} = -\frac{2}{x} \, dx
\]
Step 2: Integrate both sides.
Integrating both sides gives:
\[
\int \frac{dy}{y} = \int -\frac{2}{x} \, dx
\]
This leads to:
\[
\ln |y| = -2 \ln |x| + C
\]
Simplifying:
\[
\ln |y| = \ln |x^{-2}| + C
\]
\[
y = \frac{C}{x^2}
\]
Step 3: Apply the initial conditions.
Given \( x = 2 \) and \( y = 1 \), we substitute these values into the equation:
\[
1 = \frac{C}{2^2} \quad \Rightarrow \quad C = 4
\]
Step 4: Final solution.
Thus, the particular solution is:
\[
y = \frac{4}{x^2}
\]
Multiplying both sides by \( x^2 \), we get:
\[
x^2 y = 4
\]
Therefore, the correct answer is (B).