Correct Option: B

If r1 is the density of the lead piece of volume v, the volume of water displaced by the ice block and the lead piece while floating is Vw = (V–v) r1 + v r1. When the ice melts, the lead piece sinks in water since r1 is greater than the density of water. The water produced by the melted ice has the volume (V-v) r1 and the volume displaced by the lead piece is v. So, the total volume of the water produced by ice and that displaced by the lead piece is V w1 = (V–v) r1+ v r1< V w. So, the water level goes down.