In the first state, we have an ice cube of mass m floating in the water. If it is floating (in equilibrium), it will have to displace enough water to support its weight. How much is that? It is just Volume = m/d , where m is the mass of the ice cube, and d is the density of water.
In the second state, where the ice has melted, it turns into water of volume.... Volume = m/d! exactly the same volume as it displaced before. So the added volume is the same, so the level of the water will not change.