The correct option is B Remains the same
The density of ice is less than that of water. That's why it floats on water.
Mass=Density×Volume
Consider two cases; in the first case, an ice cube of mass m is added to some water. If it is floating, it will have to displace enough water to support its weight.
In the second case, the ice cube has melted. It turns into the volume of water that it displaced before. So, the added volume is the same as the displaced volume; hence, there will be no change in the level of water.