Hi Divya,
I assume you're going ahead in the following manner;
$$y^2 = \frac{1}{\frac{1}{x^2}+x^2}$$
$$y^2 = \frac{1}{\left(\frac{1}{x}+x\right)^2 -2} \text{ (1)}$$
Now, I don't understand what you meant by 'root of 2 gives..', but I'll tell you how to go ahead from here.
We know that the squareroot function in the denominator must be defined over all real $$x$$, i.e
$$1+x^4>0 \Rightarrow x^4>-1$$ but since $$x^4$$ is always positive, this will be true for all $$x$$.
We know, to maximise $$y$$, we must maximise $$y^2$$ and hence we must minimise the denominator in $$\text{(1)}$$. Or, we must minimise $$\frac{1}{x}+x$$.
We see that $$x$$ should be taken to be always positive if we want to maximise $$y$$, hence the minimum value of $$\frac{1}{x}{x}$$ can be calculated by AM-GM and it comes out to be $$2$$. (Sidenote: this happens when $$x=1$$).
And hence,
$$y^2 = \frac{1}{2^2-2} \Rightarrow y^2 = \frac{1}{2}$$
Again, since we assumed $$x$$ to be positive, we get $$y=\frac{1}{\sqrt{2}}$$
Note that we have put $$x=1$$ so I don't understand what you were objecting at.
Hope this helps