I am not sure if you are aware, but water will expand roughly 8% when frozen. This is another way of saying that the area water takes up will decrease by roughly 8% when it melts (when it is no longer frozen).
It's actually closer to 9%. Regardless, sea levels will rise because the majority of the ice is not currently in the sea, but above it. When it all melts, sea levels will rise by around 70 meters.
I am not sure what that picture is of, perhaps of an ice cap on land. The density of ice results in approximately 92% of it being under water.
The assertion that all of the world's ice will melt seems like fear mongering to me.