The correct option is A Remains the same
A piece of ice kept in water displaces the volume of water whose weight is equal to the weight of the ice. Now, when the ice starts to melt, the weight of the water formed due to melting will be equal to the weight of the water that was displaced earlier. That is, the water formed due to melting would perfectly occupy the space that had been occupied earlier by the ice. Hence, there would not be any change in the level of the water.