The correct option is A Fall
If the ice cube initially contains the lead piece then as ρPb>σW, it will sink when ice melts and so the water displaced by it will be equal to its own volume,
i.e., V2=(m/ρPb) [as ρ=m/V]
So finally total volume occupied by water formed by melting of ice and lead piece.
V1+V2=MσW+mρPb
Now as ρPb>σW, this volume will be lesser than initial by water displaced by the floating system (Eqn. 1); so the level of water is beaker will go down as the ice melts if the contains a sinking impurity.