When salt X dissolves in distilled water and creates a clear solution that turns red litmus paper blue, it indicates that the solution is basic (alkaline).
This happens because salt X likely contains a basic component, such as a metal hydroxide or an alkali metal salt. When dissolved, it releases hydroxide ions (OH⁻) into the solution. These hydroxide ions increase the pH of the solution, making it basic.
Red litmus paper turns blue in basic solutions, which is why you observe this change. In summary, the phenomenon shows that salt X produces a basic solution when dissolved in water.