
I have no clue, I know that the radius is 2, will that mean that i have to go 2 units up every time?

I have no clue, I know that the radius is 2, will that mean that i have to go 2 units up every time?
Since the given radius of $r=2$ conflicts with the given coordinates of $D=(1,-3)$ we may assume that the insertion of the coordinates $(1,-\sqrt{3})$ was intended as a correction of a typographical error in the original.
Since the coordinates of a point $P=(x,y)$ on a circle with equation $x^2+y^2=r^2$ are given by $x=r\cos\theta,\,y=r\sin\theta$, the coordinates of the point $C=(2\cos40^\circ,2\sin40^\circ)$
In general the coordinates of a point on a circle centered at $(0,0)$ and having radius $r$ are equal to $(r\cos\theta,r\sin\theta)$ where $\theta$ is the angle between the segment connecting the center to the point and the positive $x$-axis as depicted in the following diagram.
Using the trigonometric identity $\cos^2\theta+\sin^2\theta=1$ we see that the sum of the squares of the coordinates is
$$ x^2+y^2=(r\cos\theta)^2+(r\sin\theta)^2=r^2(\cos^2\theta+\sin^2\theta)=r^2\cdot1=r^2$$
Therefore the coordinates satisfy the equation
$$ x^2+y^2=r^2 $$
I have no idea why the radius is given as $2$ when we can clearly see that the point $D $ also lies on it.
We know that the parametric equation of a circle $x^2 + y^2 =a^2$ is given by $(a\cos \theta, a\sin \theta) $.
Substituting the point $(1, -3) $ in the equation of the circle, we get its equation as $x^2+y^2=10$. Thus the parametrization of a point on it is given by $(\sqrt{10}\cos \theta, \sqrt {10}\sin \theta) $.
You can find the angle $X $ (in your diagram) by equating the point and the parametric form. Hope it helps.