Can You Solve this Ice Diamond Riddle? ft. Vsauce’s Michael Stevens

If there is enough ice proportional to diamond at the start for the combination to float with some ice above the water then it could do any of the 3 options depending upon how many air bubbles are in the ice as the displaced volume could be more, the same or equal to the volume of the new melted water plus the volume of diamond but if the combination sinks at the start then the water level would go down due to the volume of melted water being less than the volume of its equivalent mass in ice and more so if there were air bubbles in the ice as in that case the volume of the diamond would be a constant and it would be its mass holding the ice and air down. I hope i understand Archimedes displacement principle enough to have fully covered all the options i spent way to much time on this. Nope i just thought of one more weird one if the "air bubbles" in the ice were actually a vacuum there might be another option but its too late and i am too tired to figure it out Gnight from my time zone.