First take a bucket full of water.And put a inverted glass perpendicular to water inside the bucket .Then what will happen?
1) Bucket is not completely filled with water some space is remaining between top water layer and bucket top.
1) This is happening in real world.So think of other factors too.
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Two things will determine the rise in water level when we look at it.... first the real rise in water level because the immersed portion of the glass will displace some water. Second, when we look at the water level through the glass, light from any particular horizontal cross-section of water refracts and causes an apparent rise in water level of the already risen water level. Hence the rise is noticeable. But if you are looking at the water not through the glass, the rise will be less.