Sweet Sugar Water

It depends on the starting level. If it's hight enough the pressure generated by solution will be greater than the osmotic pressure and the level will go down. https://en.m.wikipedia.org/wiki/Osmotic_pressure

The solution inside the funnel ( concentrated sugar solution ) is more concentrated than the solution present outside the funnel ( distilled water ) and they both are separated by a cellophane paper ( selectively permeable ). These are the vital conditions for osmosis to take place . As a result, water from the beaker enters inside the funnel and the level of sugar solution in the funnel increase. Also, the solution in the funnel gets diluted (tastes less sweet).

$\therefore$ After some time the level of sugar solution in the funnel $\color{#20A900} \textbf{increases}$ .

This phenomenon arises due to pressure difference. For fluids like water, on the surface of it pressure is exerted by air which tries to compress it. As a result surface tension is produced. Now when tube is inserted low surface tension occurs in the tube. In order to maintain the equilibrium, level of the fluid increase.

Idea :Under "normal" conditions, molecules move from higher to lower concentration .

Case : sugar is not allowed to move (given in the condition). Water is at lower concentration in sugar solution. Hence water from beaker moves into the funnel, rising the level of solution inside the funnel.

Thinking purely of the osmosis portion of this question, I have three ways to think about the movement:

1) the water (because it can permeate the parchment paper) acts as a single “blob” that will attempt to become homogenous. Imagine if you poured the sugar water into distilled water - it would eventually become homogenous throughout. The water as a “blob” can move both direction across paper, but the sugar cannot move. Therefore - the solution that is only water molecules will rush in to the solution that contains water and sugar molecules to dilute the sugar mix and homogenize the entire water “blob”.

2) more dilute moves to less dilute (so that end product is more equal, less extreme)

3) more concentrated molescules (only water) moves to less concentrated molecules (water with sugar molecules spacing)

Due to diffusion / osmosis of solvent from less concentrated solution to more concentrated solution, in this case sugar solution , the level of the solution will ultimately rise

Maybe, in three houers a steady state is reached...