Well, what you give in the first response is NOT a definition of "differentiable". It certainly is not what is given in the Wikipedia site. I think you must have copied wrong- you have an "f(x,y)" that doesn't belong in there.
Essentially, what Wikipedia says is that f(x,y) is differentiable at (x_0,y_0) if and only if there exist a vector u\vec{i}+ v\vec{j} and a function \epsilon(x,y) such that for for some f(x,y)= f(x_0,y_0)+ (u\vec{i}+ v\vec{j})\cdot ((x-x_0)\vec{i}+ (y- y_0)\vec{j})+ \epsilon(x,y) and that \lim_{(x,y)\to (x_0,y_0)} \epsilon(x,y)/\sqrt{(x-x_0)^2+ (y-y_0)^2}= 0.
In that case, the vector u\vec{i}+ v\vec{j} is the "gradient" of f at (x_0,y_0).
So I would recommend that you go ahead and find the gradient of f(x,y)= xy at (x_0, y_0) and use that to determine what \epsilon(x,y) must be. If you can then prove that \epsilon(x,y)/\sqrt{(x-x_0)^2+ (y- y_0)^2} goes to 0 as (x,y) goes to (x_0,y_0), you are done.