When ice floats, it displaces a volume of liquid equal to the weight of the ice. The weight of melted ice equals the weight of water it becomes. The density of water (1 g/cm³) is less than the liquid's density (1.2 g/cm³).

The volume of water from melting, Vwater=mρwater, is greater than the displaced volume of the denser liquid, $V_{\mathrm{disp}}=\frac{m}{{\rho }_{\mathrm{liquid}}}$. Since ${\rho }_{\mathrm{liquid}}>{\rho }_{\mathrm{water}}$, then $V_{\mathrm{water}}>V_{\mathrm{disp}}$. The melted water occupies more volume than the previously displaced liquid, so the level rises.

Final answer: rises