When two elements bond and form a compound, what
happens to their electrons?
A. They share or give away their
electrons.
B. Both elements lose electrons.
C. Nothing happens to their electrons.

As opposed to ionic bonding in which a complete transfer of electrons occurs, covalent bonding occurs when two (or more) elements share electrons

Explanation:

The Lewis structure of Diimide (N₂H₂) is shown below.

In this molecule two Nitrogen atoms attached to each other through a double bond are further attached to one one Hydrogen atom. Also, each Nitrogen atom carries one non-binding electron pair (Lone Pair) (Highlighted RED).

Result:
          Option-C (each nitrogen has one nonbinding electron pair) is the correct answer.