The total volume of the large cylindrical container is   =  =  cm^3.


The volume of the water in the large container initially is   = 1664 cm^3.


The volume of the free space in the large cylinder over the water surface is   -  =  cm^3.


The volume of the smaller cylinder is   =  cm^3.


When the smaller cylinder is fully submersed into the water in the larger cylinder, it displaces  

     =  cm^3 of water out from the larger cylinder.



After that, the volume of the water of  =  cm^3 will go from the larger cylinder to the smaller one.



Thus, when the smaller cylinder is taken out from the larger, it carries off / (removes) the volume of  

     of water from the larger cylinder.



Thus, the total volume of water   +  =  cm^3  went finally out from the larger cylinder.


So, finally the level of remained water in the larger cylinder is   =  = 17.0625 centimeters.    (*)


            the level of water in the smaller cylinder is   =  = 10.24 centimeters.    (**)


And the difference of these levels (*) and (**)  is  17.0625 - 10.24 = 6.8225 centimeters.     ANSWER


Answer.  The difference of the levels is 6.8225 centimeters.  Option B).