Answer
i. The water level falls.
ii. The water level falls.
Work Step by Step
Initially, the rowboat-with-anchor are floating and in equilibrium. Therefore, the weight of the water displaced by the rowboat hull exactly equals the combined weight of the boat and the anchor.
i. If the rowboat were removed it would no longer displace any water, so the water level would drop back down to its natural, boatless state.
ii. If the anchor were placed on the shore, the weight of the water displaced by the rowboat now just equals the weight of the boat alone. Less water is displaced, so again, we conclude that the water level falls.