Answer
The mirror should be moved in (shorter path length).
Work Step by Step
Since the number of wavelengths traveled in the arm with the vessel increases, we must decrease the number of wavelengths traveled in the other arm.
You can help us out by revising, improving and updating this answer.
Update this answerAfter you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.