The finite state machine described by the following state

The finite state machine described by the following state diagram with A as starting state, where
an arc label is x and x stands for 1-bit input and y stands for 2 bit output
y

1. outputs the sum of the present and the previous bits of the input
2. outputs 01 whenever the input sequence contains 11
3. outputs 00 whenever the input sequence contains 10
4. None of the above

As per the given diagram.

Therefore, the finite state machine outputs the sum of the present and previous bits of the input.

an arc label is	x	and x stands for 1-bit input and y stands for 2 bit output
	y