Basic Logic Gate with a Counter
The assignment is telling you to utilize two specific outputs of the counter; it does not tell you to do anything with the others.
It is also telling you to connect these two outputs to monitored nodes X and Y so that you can see what is going on.  Presumably output F is also monitored.
In effect, the exercise at this stage only needs a two bit counter; maybe they only had a four bit counter model on hand, or maybe there's another step in this assignment or tomorrow's where a four bit counter will be needed.  Given that this appears to be a hex counter which runs to a power of two before wrapping it doesn't really matter; if it were a decade or BCD counter, then the output pattern would be irregular.