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Floating ice is floating, so if it melts it won't change the level.
It weighs the same so it displaces as much water when it floats as when it is molten.
Omitting the effect of thermal expansion. Mind that up to 4°C / 39°F there is no expansion but contraction instead+ at 4°C water has its highest density.
Burning fossil fuel (hydrocarbons) releases not only water but also CO2.
Most of that will be absorbed by plants through photosynthesis, recreating hydrocarbons.
Plants need lots of water for that too for the hydrogen atoms.
So that's where the water goes. Back into fuel, if we use the plants for that. Or fossil fuel if we let it rot in swamps and such and cover it by new layers of earth crust and wait some million years.
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