The degeneracy of the energy level E = 65 E0 for a two-dimensional particle in a box is determined by finding the combinations of positive integers n_x and n_y that satisfy the equation n_x^2 + n_y^2 = 130. The approach involves identifying all pairs of integers that meet this condition, with examples including (9, 7) and (7, 9), indicating at least a degeneracy of 2. The problem can be solved effectively using a guess and test method due to the small integers involved. Ultimately, the key to solving the degeneracy lies in counting all valid solutions to the equation. The discussion highlights the mathematical nature of the problem and the straightforward methods for arriving at the answer.