What is the outcome when Fencer X, who received a yellow card for non-conforming equipment, is losing 3-2 and Fencer Y scores a valid touch while X falls?

In this situation, Fencer X has received a yellow card for non-conforming equipment, which typically serves as a warning and does not directly impact the score. When Fencer Y scores a valid touch while Fencer X is falling, the score is adjusted based on the valid touch made by Fencer Y.

Fencer X was initially losing 3-2 before the touch was scored. When Fencer Y scores, they increase their own score by one point, resulting in a new score of 4-2. The action of Fencer X falling does not negate the validity of the touch scored by Fencer Y. Touches are assessed based on valid actions in fencing, and the scoring takes precedence over the falling action of the opponent unless it constitutes a violation that would affect the bout.

Thus, the correct answer reflects that Fencer X is now losing 4-2 after Fencer Y’s valid touch.