A student constructs a galvanic cell at \(298 \text{ K}\) based on the balanced reaction below:

\[\text{Ni}(s) + 2\text{Ag}^+(aq) \rightarrow \text{Ni}^{2+}(aq) + 2\text{Ag}(s)\]

Initially, the cell operates under standard conditions with \([\text{Ag}^+] = 1.0 \text{ M}\) and \([\text{Ni}^{2+}] = 1.0 \text{ M}\), giving a standard cell potential \(E^\circ_{\text{cell}} = +1.06 \text{ V}\). Distilled water is added to the \(\text{Ag}^+(aq)\) half-cell, lowering \([\text{Ag}^+]\) to \(0.10 \text{ M}\) while \([\text{Ni}^{2+}]\) remains \(1.0 \text{ M}\). Which of the following predicts the effect of this modification on the cell potential, \(E_{\text{cell}}\), and provides the correct reasoning?