Correct Answer.

if (x > y) {
      z = x + 1;
} else {
      z = y + 1;
}
z = z - 1;

For the relation parT P z = max(x,y) to hold, it has to be the case that at any state satisfying T ("true"), if the program in question terminates, then the resulting store satisfies "z = max(x,y)". This is indeed the case for the P above. For consider any terminating run of the program: This case analysis reveals that, after program termination, the value stored in z equals the larger of the values stored in x and y. (What happens if the values stored in x and y are equal?)
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