Step 1: int x=12, y=7, z; here variable x, y and z are declared as an integer and variable x and y are initialized to 12, 7 respectively.

Step 2: z = x!=4 || y == 2;
becomes z = 12!=4 || 7 == 2;
then z = (condition true) || (condition false); Hence it returns 1. So the value of z=1.

Step 3: printf("z=%d\n", z); Hence the output of the program is "z=1".