Output is 2
First Priority Encoder have I0 = 0 ,I1 = 1, I2 = 1, I3 = 0.
As we Know Priority Encoder will select the input with highest suffix, therefore, I2 will be selected which will be represented as 10.
Now for Multiplexer, for x = 1, it will chose I1 which is given as 0.
thus for second Priority encoder I0 = 1 ,I1 = 0, I2 = 1, I3 = 0. thus it will choose I2 and it will be represented as 10(output). now this 10 will be input for the LED Display, which will show 2.