GR0877 Problem 31
PROBLEM STATEMENT: This problem is still being typed.
SOLUTION: (C) Applying Archimedes’ principle: 
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Physicsworks Blog 
Logic helps in this one too, no calculations necessary:
If the block were denser than water, it would sink to the bottom. (D) and (E) are out. If the block were less dense than oil, it would float at the top. (A) is out.
The remaining choices are (B) and (C), and since the block is sunk further into the water you can safely assume that the density is closer to water than it is oil, eliminating (B) and leaving you with the final answer of (C).
Hope this helps!