The correct statement is: They have valence electrons in the same energy level.
Nitrogen (N) and oxygen (O) are both found in the second period of the periodic table. As such, they have their valence electrons in the same energy level (specifically, the second energy level). Nitrogen has 5 valence electrons (2 in the first energy level and 3 in the second), while oxygen has 6 valence electrons (2 in the first energy level and 4 in the second), but they both occupy the same energy level for their valence electrons.