(c) At the highest point of its flight, vertical component of velocity is zero and only horizontal component is left which is
$u_{x} = u\cos\theta$
Given $\theta = 45{^\circ}$
$\therefore\ \ u_{x} = u\cos 45{^\circ} = \frac{u}{\sqrt{2}}$
Hence, at the highest point kinetic energy
$E^{'} = \frac{1}{2}mu_{x}^{2}$
$= \frac{1}{2}m\left( \frac{u}{\sqrt{2}} \right)^{2} = \frac{1}{2}m\left( \frac{u^{2}}{2} \right)$
$= \frac{E}{2}\ \ \left( \because\frac{1}{2}mu^{2} = E \right)$